Multiple Choice
Devon owns 30% of the Agate Company for which his basis is $200,000.He sells one-forth of his ownership interest to Bernice for $90,000.Which of the following statements is correct?
A) If Agate is an S corporation,Devon has a recognized gain of $40,000,some of which may be capital and some of which may be ordinary income.
B) If Agate is a C corporation,Devon has a recognized capital gain of $40,000.
C) If Agate is a partnership,Devon has a recognized capital gain of $40,000.
D) Only b.and c.are correct.
E) a. ,b. ,and c.are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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