Honeycomb has two shareholders Hannah 70% and Harry, 30%. It distributes the following assets in a complete liquidation: land to ( Harry) FMV $150,000, basis $120,000. Inventory to (Hannah) FMV $60,00, basis $45,000. building to (Hannah) FMV $280,000, basis $315,000. Cash to (Hannah) $10,000.

How much total gain or loss will Honeycomb recognize on this liquidation?  

Answer rating: 100% (QA)

To determine the total gain or loss recognized by Honeycomb on this liquidation we need to ca... View the full answer