For seven? years, France Corporation has been owned entirely by Steve and Maryssa? who are husband and wife? Steve and Maryssa have a $183,000

basis in their jointly owned France stock. The France stock is Sec. 1244 stock. Do they receive the following assets in liquidation of theirs? corporation: accounts? receivable,

$30,000 FMV; a? car, $17,000 ?FMV; office? furniture,??$3,000 ?FMV; and $15,000 cash.

Requirements

a.	What are the amount and character of their gain or? loss?
b.	How would your answer change if the accounts receivable instead had a $157,000 ?FMV?
c.	What is France?'s basis for each property received in the liquidation in Parts a and? b?

Answer rating: 100% (QA)

Solution b c Shareholders recognize gain or loss Money FMV of n... View the full answer