The City of Portland gives Data Corporation $60,000 cash and land worth $100,000 to induce it to move. The cash was not spent during the 12 months following contribution. The contribution results in
A. a zero basis in the land and $60,000 ordinary income to the corporation 24 months after the time of contribution if the cash is not used to purchase an asset.
B. a zero basis in the land and a $60,000 basis reduction in other assets.
C. income recognition in the amount of $60,000 to the corporation 12 months after the time of contribution.
D. income recognition in the amount of $160,000 to the corporation at the time of contribution.
Answer: D
You might also like to view...
In the E-R diagram for OE/S, SHIPMENTS generate the SALES_INVOICES
Indicate whether the statement is true or false
Which of the following is an instance of disparate-treatment discrimination?
A) An employer does not promote Kelly because she is about to take maternity leave. B) Ghalib, who is fluent in English, is not hired as a writer due to his Iraqi heritage. C) An employer refuses to install a wooden ramp to accommodate Lin who is restricted to a wheelchair. D) A factory hires 22-year old Jerry over 46-year old Barry, citing age as the reason. E) All of the above
Leading a focused team to execute a strategic goal requires the manager to _________ what is on each team member’s work plate.
a. delegate b. monitor c. replace d. prescribe
James worked as a teacher for several years before starting an educational games company. He has a clear vision of the result he is working to get. Moreover, he is aware of his strengths and weaknesses, and he always sets realistic goals. In this case, which of the following characteristics of successful entrepreneurs does James possess?
A. leadership B. motivation to excel C. risk tolerance D. self-reliance and ability to adapt E. opportunity obsession