Upon formation of a corporation, its assets have the same bases for book and tax purposes.

Name: Upon formation of a corporation, its assets have the same bases for book and tax purposes.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Upon formation of a corporation, its assets may have different bases for book and tax purposes. This is because book basis is generally determined in accordance with generally accepted accounting principles (GAAP), while tax basis is typically determined in accordance with the tax code and regulations.

Upon Formation of a Corporation, Its Assets Have the Same