Question:43 Betty contributed to AlphaBeta Corporation a building with an adjusted basis to Betty of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Alfie contributed to AlphaBeta Corporation cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. How much gain or loss, if any, does Betty recognize with respect to this transaction? a. $0. b. $10,000. c. $70,000. d. $100,000. Which of the following applies to publicly traded corporations?A. There is an organized market for buying and selling the company's shares.B. The company must prepare and issue its financial statements in conformity with generally adopted accounting principles.C. The company must have its financial statements audited by an independent firm of CPA.D. The company's financial information must be submitted to the Securities and Exchange Commission.E. All of the above.
Question:43 Betty contributed to AlphaBeta Corporation a building with an adjusted basis to Betty of $50,000 and a fair market value of $150,000 that was subject to a mortgage of $120,000 in exchange for 50 percent of the voting common stock (the only class of stock) of the AlphaBeta Corporation. The AlphaBeta Corporation will assume the mortgage on the building. As part of the same transaction, Alfie contributed to AlphaBeta Corporation cash of $30,000 in exchange for the other 50 percent of the voting common stock of AlphaBeta Corporation. How much gain or loss, if any, does Betty recognize with respect to this transaction? a. $0. b. $10,000. c. $70,000. d. $100,000. Which of the following applies to publicly traded corporations?A. There is an organized market for buying and selling the company's shares.B. The company must prepare and issue its financial statements in conformity with generally adopted accounting principles.C. The company must have its financial statements audited by an independent firm of CPA.D. The company's financial information must be submitted to the Securities and Exchange Commission.E. All of the above.
Chapter4: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 21CE
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Transcribed Image Text:Question:43
Betty contributed to AlphaBeta Corporation a building with
an adjusted basis to Betty of $50,000 and a fair market
value of $150,000 that was subject to a mortgage of
$120,000 in exchange for 50 percent of the voting common
stock (the only class of stock) of the AlphaBeta
Corporation. The AlphaBeta Corporation will assume the
mortgage on the building. As part of the same transaction,
Alfie contributed to AlphaBeta Corporation cash of $30,000
in exchange for the other 50 percent of the voting common
stock of AlphaBeta Corporation. How much gain or loss, if
any, does Betty recognize with respect to this transaction?
a. $0. b. $10,000. c. $70,000. d. $100,000.
Which of the following applies to publicly traded
corporations?A. There is an organized market for buying
and selling the company's shares.B. The company must
prepare and issue its financial statements in conformity
with generally adopted accounting principles.C. The
company must have its financial statements audited by an
independent firm of CPA.D. The company's financial
information must be submitted to the Securities and
Exchange Commission.E. All of the above.
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