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Martin Operates a Law Practice as a Sole Proprietorship Using

Question 119

Multiple Choice

Martin operates a law practice as a sole proprietorship using the cash method of accounting. Martin incorporates the law practice and transfers the following items to a new, solely owned corporation. Martin operates a law practice as a sole proprietorship using the cash method of accounting. Martin incorporates the law practice and transfers the following items to a new, solely owned corporation. Martin must recognize a gain of and has a stock basis of : A) $20,000; $40,000 B) $20,000; $30,000 C) $0; $40,000 D) $0; $30,000 Martin must recognize a gain of and has a stock basis of :


A) $20,000; $40,000
B) $20,000; $30,000
C) $0; $40,000
D) $0; $30,000

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