Jermaine owns all 200 shares of Peach Corporation stock valued at $50,000. Kenya, a new shareholder, receives 200 newly issued shares from Peach Corporation in exchange for inventory with an adjusted basis of $40,000 and an FMV of $50,000. Which of the following statements is correct?
A) No gain will be recognized by Kenya.
B) The transaction results in $10,000 of ordinary income for Kenya.
C) The transaction results in $10,000 of capital gain for Kenya.
D) Kenya may defer the recognition of any tax until the stock is sold.
B) The transaction results in $10,000 of ordinary income for Kenya.
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The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. The clerk in the accounting department records both purchases and payments of invoices
a. Adheres to sound internal control procedures b. Violates sound internal control procedures c. Neither strengthens nor violates internal control
______ moral development is an approach to understanding ethical decision-making that focuses on the mental determination of right and wrong based on values and social judgments.
A. Situational B. Deontological C. Hypernormal D. Cognitive
Gifts to charity are not allowed for AMT purposes.
Answer the following statement true (T) or false (F)
_________ is a contractual stipulation to ensure that e-business participants do not deny their online actions.
Fill in the blank(s) with the appropriate word(s).