Question: In the current year, Simon receives a liquidating cash distribution of $32,000 from Torborg Corporation. What is the tax effect of the distribution for Torborg

In the current year, Simon receives a liquidating cash of $32,000 from Torborg Corporation. What is the tax effect of the for Torborg and for Simon if
a. Simon has a basis in his stock of $42,000?
b. Simon has a basis in his stock of $19,000?
c. Assume the same facts as in parts a and b, except that Torborg is an S corporation. What is the tax effect for Torborg and Simon?

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