Gold Corporation (E&P of $1 million) has 2,000 shares of common stock outstanding owned by unrelated...

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Gold Corporation (E&P of $1 million) has 2,000 shares of common stock outstanding owned by unrelated parties as follows: Veronica, 1,000 shares, and Tommie, 1,000 shares. Both Veronica and Tommie paid $150 per share for the Gold Corporation stock 12 years ago. In May of the current year, Gold distributes land held as a long-term investment worth $390,000 (basis of $180,000) to Veronica in redemption of 350 of her shares. Required: a) What are the tax consequences to Gold Corporation on the distribution of the land? Gold Corporation (E&P of $1 million) has 2,000 shares of common stock outstanding owned by unrelated parties as follows: Veronica, 1,000 shares, and Tommie, 1,000 shares. Both Veronica and Tommie paid $150 per share for the Gold Corporation stock 12 years ago. In May of the current year, Gold distributes land held as a long-term investment worth $390,000 (basis of $180,000) to Veronica in redemption of 350 of her shares. Required: a) What are the tax consequences to Gold Corporation on the distribution of the land?

Answer rating: 100% (QA)

When Gold Corporation distributes land held as a longterm investment to Veronica in redemption of 350 of her shares the corporation will recognize a g... View the full answer