Lisa transferred land worth $200,000, with a tax basis of $40,000, to PIE Corporation, an existing entity, for 800 shares of its stock. PIE Corporation has two other shareholders, Bill and Bob, each of whom holds 100 shares. With respect to the transfer:. A) Lisa has no realized gain
B) Pie has a basis of $160,000 in the land
C) Lisa has a basis of $200,000 in her 800 shares of Pie
D) Lisa has a basis of $40,000 in her 800 shares of Pie
E) None of the above.

Consumer surplus is: the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers. the difference between the price of a product and consumers' valuation of the last unit of the product purchased.

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Why is investing in a mutual fund less risky than investing in a particular company’s stock?