Corporation ABC was a wholly-owned subsidiary of Top Corporation. Both corporations were domestic C corporations. Top received a liquidating distribution of property (worth $400 and a basis of $280) from Bottom in cancellation of all its stock. What amount of gain will Top recognize if Top had a basis of $100 in the ABC stock before the receipt of the property?

a.$ 0

b.$300

c.$400

d.$120

Answer rating: 100% (QA)

The correct answer is d120 Heres how we arrive at the answer Liquidating distribution Since Top rece... View the full answer