Peter and Chris are father and son. Peter owns 70% of Family Bush Inc. and Chris owns

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Peter and Chris are father and son. Peter owns 70% of Family Bush Inc. and Chris owns the remaining 30% of Family Bush Inc. Pursuant to a plan of complete liquidation, Family Bush Inc. distributes land with a fair market value of $407818 to Chris in exchange for his stock. Family Bush had purchased the land four years ago for $497803, and the land is distributed to Chris along with a mortgage liability of $151584. Chris assumes the mortgage. Chris's basis for his Family Bush stock at the time of liquidation was $74496. How much gain or loss is recognized by Chris as a result of the liquidation? Question 2Answer a. $333322 ordinary income b. $181738 ordinary income c. $181738 capital gain d. $333322 capital gain e. $423307 capital gain

Posted Date: May 18, 2024 08:08 PM

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Peter and Chris are father and son. Peter owns 70% of Family Bush Inc. and Chris owns

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