Jefferson Millinery Inc. (JMI) has decided to liquidate its wholly owned subsidiary, 8 Miles High Inc. (8MH).
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Question:
Jefferson Millinery Inc. (JMI) has decided to liquidate its wholly owned subsidiary, 8 Miles High Inc. (8MH). 8MH had the following fiscal accounting balance:
FMV | adjusted base | Appreciation | ||||||
Money | ps | 265,000 | ps | 265,000 | ||||
Building | 78,000 | 34,500 | 43,500 | |||||
Tierra | 187,000 | 120,500 | 66,500 | |||||
Total | ps | 530,000 | ps | 420,000 | ps | 110,000 | ||
a. What amount of gain or loss does 8MH recognize in full liquidation?
b. What amount of gain or loss does JMI recognize on full liquidation?
C. What is JMI's taxable amount on the building and land after full liquidation?
Related Book For
Taxation Of Individuals And Business Entities 2016
ISBN: 9781259334870
7th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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