Solved

Four Individuals Form Chickadee Corporation Under § 351

Question 49

Multiple Choice

Four individuals form Chickadee Corporation under § 351. Two of these individuals, Jane and Walt, made the following contributions: Four individuals form Chickadee Corporation under § 351. Two of these individuals, Jane and Walt, made the following contributions: Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments. A) Jane must recognize income of $40,000; Walt has no income. B) Neither Jane nor Walt recognize income. C) Walt must recognize income of $130,000; Jane has no income. D) Walt must recognize income of $100,000; Jane has no income. E) None of these. Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments.


A) Jane must recognize income of $40,000; Walt has no income.
B) Neither Jane nor Walt recognize income.
C) Walt must recognize income of $130,000; Jane has no income.
D) Walt must recognize income of $100,000; Jane has no income.
E) None of these.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q44: A taxpayer transfers assets and liabilities to

Q45: When a taxpayer incorporates her business, she

Q46: Leah transfers equipment (basis of $400,000 and

Q47: Nancy, Guy, and Rod form Goldfinch

Q48: For transfers falling under § 351, what

Q50: The control requirement under § 351 requires

Q51: Because boot is generated under § 357(b)

Q52: Similar to the like-kind exchange provision, §

Q53: When consideration is transferred to a corporation

Q54: Alan, an Owl Corporation shareholder, makes a