Question: Assume in Problem 58 that the land had a fair market value of $630,000 on the date of its transfer to Pink Corporation. On the

Assume in Problem 58 that the land had a fair market value of $630,000 on the date of its transfer to Pink Corporation. On the date of the liquidation, the land's fair market value has decreased to $500,000. How would your answer to Problem 58 change if:

a. All of the land is distributed to Maria?

b. All of the land is distributed to Paul?

c. The land is distributed 85% to Maria and 15% to Paul?

d. The land is distributed 50% to Maria and 50% to Paul?

e. The land is sold and the proceeds of $500,000 are distributed proportionately to Maria and to Paul?

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a The answer would not change The land is disqualified property that is distributed to a related party thus the entire 220000 loss realized is disallo... View full answer

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