When Pheasant Corporation was formed under § 351, Kristen transferred property (basis of $26,000 and fair market value of $22,500) for § 1244 stock. Kristen's basis in the Pheasant stock is $26,000 . Three years later, Pheasant Corporation goes bankrupt and its stock becomes worthless. Kristen, who is single, owned the stock as an investment. Kristen's loss is:

a. $26,000 capital.
b. $22,500 ordinary and $3,500 capital.
c. $3,500 ordinary and $22,500 capital.
d. $26,000 ordinary.
e. None of the above.


b

Business

You might also like to view...

A firm has a gross profit of $60 million and a net marketing contribution of $14 million. The firm has a market share of 6% and a margin per unit of $70. Calculate the marketing and sales expenses of the firm

A) $46 million B) $70 million C) $ 420,000 D) $10,000 E) $14 million

Business

Which of the following is a Facebook feature that allows app developers to integrate their apps into the Facebook pages of users who sign up for the app?

A. Whatsapp B. Like button C. Messenger D. Open Graph

Business

Max has just accepted a full-time position over the phone. What is the best thing for him to do now?

A) Do nothing until he shows up the first day of work. B) Write a job acceptance letter to confirm the details and formalize the acceptance. C) Thank his employer on social media. D) Visit the office several days before his official start date to show his eagerness.

Business

Bronson Building Products Inc estimates that FCFF in the coming year will be $1,600,000, year two will be 15% greater than year one, and year three will be 10% greater than year two. Bronson has a cost of capital of 12%

Estimate the firm's terminal value FCFF as of year three if cash flows are estimated to continue to increase at a rate of 5% indefinitely. What is the overall estimated (present) value of the firm?

Business