Judy owned two blocks of Burr Corp. stock which she had purchased as investments:

Judy’s stock represented 30 percent of Burr Corp's outstanding stock. Pursuant to the complete liquidation of Burr Corp., Judy received a $60,000 cash distribution on October 20, 2019, in exchange for her 250 shares. Burr Corp’s accumulated earnings and profits immediately before the liquidation totaled $100,000. What is the amount and character of Judy’s income that must be recognized as a result of the liquidation?

Transcribed Image Text:

Shares 50 200 Acquired 1/2/18 11/8/18 Basis $10,000 30,000