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Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to

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Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to William, a 25% shareholder. William has a $200,000 basis in his Coast stock. The land is inventory in the hands of Coast Corporation. Coast Corporation must recognize 

a. No gain

b. $100,000 of ordinary income.

c. $100,000 of long-term capital gain.

d. $200,000 of ordinary income.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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b 100 000 of ordinary income Given information Land c…View the full answer


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South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

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ISBN: 9781305399884

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Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young

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Question Posted: January 21, 2013 04:15:59
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