Under the terms of their divorce agreement, Humphrey transferred Corporation H stock to his former wife, Greta, as a property settlement. At the time of the transfer, the stock had a basis to Humphrey of $40,000 and a fair market value of $55,000. What is the tax consequence of this transaction to Humphrey, and what is Greta's basis in the Corporation H stock?
A) Humphrey has no gain or loss; Greta's basis is $55,000.
B) Humphrey has no gain or loss; Greta's basis is $40,000.
C) Humphrey has a gain of $15,000; Greta's basis is $55,000.
D) Humphrey has a gain of $15,000; Greta's basis is $40,000.
B) Humphrey has no gain or loss; Greta's basis is $40,000.
There are no tax consequences from the property settlement. Greta has a carryover basis—that is, she takes Humphrey's basis of $40,000.
You might also like to view...
In which culture are employees measured by their levels of performance and productivity, are expected to have a high commitment toward achieving organizational goals, and is task-driven to the point that employees do not tend to socialize?
A. market B. fragmented C. mercenary D. communal
______ is the individually perceived sequence of attitudes and behaviors associated with work-related experiences and activities over the span of the person’s life.
A. Employee development B. Career C. Remediation D. Emotional intelligence
Which of the following is not true of affirmative action (positive discrimination)?
a. Ensures a person gets the job before anyone else because they are from a minority group b. Seeks to reverse the consequences of years of discrimination based on a person’s sex, race, religion, etc. c. Ensures that when a person from a minority group applies for a position, and possesses similar knowledge, skills, and education as an applicant from a non-minority group, the minority member gets the job d. Helps promote equity and diversity within organizations and society at large
Bottum Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $20,000 and the ending balance was $36,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $111,000, of which $2,000 consisted of raw materials classified as indirect materials. The direct materials cost for May was:
A. $45,000 B. $79,000 C. $47,000 D. $63,000