Five shareholders each contribute $$10,000$ in ewchange for $a206$ interest in copporate stock of FNU Corporation. Fifteen vears later, FiU Corp. emters into a plan of complete liquidation. Under the plan. FiU Cerporation setis the $$30,000$ of assets for canh panis of $$50,000$ and a FMV of $$30,0001.$ FIU Corp, and then distributes the cash to the shareholders?

What are the tav consequences to the shareholders of FIU Corporation?

rach wift report a $$4000$ caplal gain

The sharehoders cach wif take a $$6\mathrm{.}000$ carryover bunh in the ansels recerved

Sidsequent distribution of the cash would be taable to the shareholders under Section $331$

Al of Bhe above

Nowe of the shove