Prime Corporation liquidates its 80%-owned subsidiary, Bass Corp. Bass Corp. distributes land to its minority shareholder, Shirley who owns 20% of the Bass Corp. stock. The land received by Shirley has $55000 FMV. The land was used in Bass corp.'s business and has an adjusted basis of $50000 and is subjected to a $10000 liability which is assured by Shirley. Shirley basis in the stock is $25000. 

What gain will  Shirley and Bass Corp recognize on the distribution of the land?  

Answer rating: 100% (QA)

To determine the gain recognized by Shirley and Bass Corp on the distribution of the land we need to ... View the full answer