Pittsburgh Corporation has three shareholders: Jim, Connor, and Nick. Jim, Connor and Nick are not

related to each other. Jim owns $65\%$ of Pittsburgh Corporation, Connor owns $20\%$ and Nick owns

$15\%.$ Pittsburgh Corporation distributes an apartment building $($FMV $$4,200,000,$ AB $$5,020,000)$ in

liquidation. The building was originally contributed by Jim one year ago in a $351$ when the FMV was

$$6,000,000$ and the AB was $$5,700,000.$

$($a$)$ How much loss will the corporation recognize if it distributes the building $65\%$ to Jim, $20\%$ to

Connor and $15\%$ to Nick?

$($b$)$ How much loss will the corporation recognize if it distributes the building to Nick alone?

$($c$)$ How much loss will the corporation recognize if it distributes the building to Jim alone?

Answer rating: 100% (QA)

a Loss on distribution of building 65 to Jim 20 to Connor 15 to Nick Jims share 65 of FM... View the full answer