PA Corporation, an S corporation, has two equal shareholders, P and A. Prior to the end of

Question:

PA an S has two equal shareholders, P and A. Prior to the end of the current year, PA decides to liquidate and sell its three remaining assets distributing the cash received to P and A. Asset 1 has a basis of $10,000 and is sold for $6,000. Asset 2 has a basis of $4,000 and is sold for $12,000. Asset 3 has a basis of $9,000 and is sold for $10,000. Shareholder P has a basis of $4,000 in her shares, and A has a basis of $20,000. The has a net loss (excluding the sales of the assets) of $2,500. Detail the tax consequences to PA and its two shareholders on the of the Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....