When incorporating her sole proprietorship, Samantha transfers all of its assets and liabilities. Included in the $30,000 of liabilities assumed by the corporation is $500 that relates to a personal expenditure. Under these circumstances, the entire $30,000 will be treated as boot.
Answer the following statement true (T) or false (F)
True
Rationale: One dollar of tainted liabilities causes all liabilities to be treated as boot under ยงย 357(b).
You might also like to view...
Describe the function of the World Trade Organization (WTO) and explain how it originated
What will be an ideal response?
Which of following statements concerning health savings accounts (HSA) is incorrect?
A) Your contributions are tax deductible whether or not you itemize. B) Employer contributions are not included in your gross income. C) Amounts in the account at the end of the year are forfeited. D) Funds in the account may be used as a source of retirement funds.
When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,600, demand doubled from 4 units sold per month to 8 units per month. However, total revenue dropped. This is an example of:
A. substitute goods B. unitary elasticity C. elastic demand D. consumer shortage E. inelastic demand
The legitimate right to make decisions and to tell other people what to do is referred to as
A. delegation. B. legitimacy. C. specialization. D. authority. E. hierarchy.