A Corp has a sole shareholder, K. K has 1,000 shares of A Corp stock, basis =

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A Corp has a sole shareholder, K. K has 1,000 shares of A Corp stock, basis = $30,000. A distributes the following assets in complete liquidation of the corp to K:

A’s Basis FMV

Land 20,000 30,000

Inventory 4,000 14,000

Machinery 10,000 20,000

Calculate the gain recognized by A on the distribution, K’s basis in the assets received, and any gain/loss recognized by K on the distribution.

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South Western Federal Taxation 2015 Essentials of Taxation Individuals and Business Entities

ISBN: 9781285438290

18th edition

Authors: James Smith, William Raabe, David Maloney, James Young

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Posted Date: Dec 31, 2020 06:45 PM

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A Corp has a sole shareholder, K. K has 1,000 shares of A Corp stock, basis =

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Anwer Paganoo The gain orecogmized by K balif in the allet oreceived andgai... View the full answer

South Western Federal Taxation 2015 Essentials of Taxation Individuals and Business Entities

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