Marcia is a 50 percent shareholder of Chevez Corp., which is in the process of liquidation. Marcia’s basis for her stock is

$25,000. Chevez’s balance sheet on the date of liquidation is as follows:

If Marcia receives her 50 percent share of all assets and liabilities, determine her gain and her basis in each asset received as a result of the liquidation. Assume that Chevez’s tax rate is 21 percent but that no tax was paid by Chevez.

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Assets Cash 100 shares of Public Co. Accounts receivable Land Building (depreciated straight line) Totals Equities Mortgage on real estate Unsecured liabilities Capital stock Paid-in capital Earnings and profits Total Basis $32,000 20,000 200,000 50,000 246,000 Value $32,000 6,000 170,000 300,000 500,000 $548,000 $1,008,000 Value $310,000 182,000 10,000 30,000 16,000 $548.000