Multiple Choice
Nick owns 60% of the Agate Company for which his basis is $500,000.He sells one-fourth of his ownership interest to Bernice for $190,000.Which of the following statements is correct?
A) If Agate is an S corporation,Nick has a recognized gain of $65,000,some of which may be capital and some of which may be ordinary income.
B) If Agate is a C corporation,Nick has a recognized capital gain of $65,000.
C) If Agate is a partnership,Nick has a recognized capital gain of $65,000.
D) Only b.and c.are correct.
E) a. ,b. ,and c.are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Section 1244 ordinary loss treatment is available
Q38: To the extent of built-in gain or
Q53: A C corporation offers greater flexibility in
Q85: Albert and Elva each own 50% of
Q89: Kirby,the sole shareholder of Falcon,Inc. ,leases a
Q91: Duck,Inc. ,is a C corporation that is
Q92: Gladys contributes land with an adjusted basis
Q94: Alanna contributes property with an adjusted basis
Q112: Under what circumstances, if any, do the
Q129: Which of the following statements is incorrect?<br>A)