In general, the basis of property to a corporation in a transfer that qualifies as a nontaxable exchange under § 351 is the basis in the hands of the transferor shareholder decreased by the amount of any gain recognized on the transfer
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: Except for certain built-in loss property, basis to the corporation is the basis of property to the transferor increased by the gain recognized as a result of the transfer.
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A persuasive email message to promote pop-up blocker software has as its central selling point the protection of children from pornography. The central selling point should
a. appear early in the message when the product is introduced. b. appear at the end of the message to reinforce the requested action. c. be reinforced as the benefits of the product are discussed. d. be emphasized in each of the areas described above.
The purpose of a reader notification is to—
a. remind readers that the business plan and the ideas it contains are your intellectual property. b. notify investors that the startup business faces some risks. c. let potential investors know when you will release the business plan. d. notify investors that the business plan is an offer for them to participate by way of investment. e. assure potential investors that an investment in the proposed enterprise will be a safe one.
Bill orders a custom-made suit from Rooks to be delivered by Friday at 5 p.m. When the suit is delivered to his office on Friday afternoon, he is in conference with a client. He accepts delivery and hangs the suit in his closet. When Bill tries on the suit Saturday evening, he discovers that the pants are cuffed. He had ordered cuffless trousers. What can he do?
a. He cannot revoke acceptance since the cuffs are not difficult to discover. b. He can revoke acceptance if the cuffs substantially impair the value of the goods to him and Rooks will not remove the cuffs. c. He can reject the goods since he had not yet accepted them prior to inspection. d. He cannot reject the goods because the cuffs are curable.
Which of the following is not perceived as a difficulty in long-range planning?
a. favorable market conditions b. inadequately defined objectives c. poor planning climate d. inexperienced managers