Stock divided into are taxable if some common stockholders receive common stock and some common stockholders receive preferred stock A) True B) False In order to induce Norma Corporation to build a new manufacturing facility in Houston, Texas, Harris County donates land (Fair Market Value of $25,000) and cash of $100,000 to the corporation. Within six (6) months of the donation, Norma Corporation spends $400,000 on the construction of the new plant located on the land. (The $400,000 includes the $100,000 cash received from Harris County) Which of the following is Correct? A) Norma Corporation will have a zero ($-0-) basis in the land a basis of $400,000 in the new plant B) Norma corporation must recognize Taxable income of $100,000 C) Norma corporation will have a zero ($-0-) basis in the land and a basis of $300,000 in the new plant D) Norma Corporation must recognize taxable income of $350,000