On January 3, 20X1, Bennett and Malik each owned 100 shares of the 200 issued shares of
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On January 3, 20X1, Bennett and Malik each owned 100 shares of the 200 issued shares of Fedderman stock. Bennett’s basis in Fedderman shares on that date was $8,100. Bennett sold all of his Fedderman shares to Gibbs on January 31, 20X1, and Fedderman made a valid election to terminate its tax year. Bennett’s share of ordinary income from Fedderman prior to the sale was $2,100. Fedderman made a cash distribution of $1,200 to Bennett on January 30, 20X1. What was Bennetts basis in Fedderman shares for determining gain or loss from the sale to Gibbs.
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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