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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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