Question 25 B's basis in the property received is m $10,000 m $20,000 m $30,000 m None of these_ Question 26 Z Co.'s recognized gain or loss on the distribution to A is m None of these_ m S35.000 capital gain m $<40,000> ordinary loss m 0 Question 27 Z Co.'s recognized gain or loss On the distribution to B is m None of these_ m $2O,0OO capital gain m $10,000 capital gain m 0 Question 28 Z Co.'s recognized gain or loss on the distribution to C is $70,000 capital gain None of these_ $20,000 capital gain $40,000 gain Question 29 Z Co.'s recognized gain or loss on the distribution to D is m <$1,600> capital loss m 0 m <$400> capital loss m None of these
Question 25 B's basis in the property received is m $10,000 m $20,000 m $30,000 m None of these_ Question 26 Z Co.'s recognized gain or loss on the distribution to A is m None of these_ m S35.000 capital gain m $<40,000> ordinary loss m 0 Question 27 Z Co.'s recognized gain or loss On the distribution to B is m None of these_ m $2O,0OO capital gain m $10,000 capital gain m 0 Question 28 Z Co.'s recognized gain or loss on the distribution to C is $70,000 capital gain None of these_ $20,000 capital gain $40,000 gain Question 29 Z Co.'s recognized gain or loss on the distribution to D is m <$1,600> capital loss m 0 m <$400> capital loss m None of these
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 15CE
Related questions
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Question 25 B's basis in the property received is m $10,000 m $20,000 m $30,000 m None of these_ |
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Question 26 Z Co.'s recognized gain or loss on the distribution to A is m None of these_ m S35.000 m $<40,000> ordinary loss m 0 |
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Question 27 Z Co.'s recognized gain or loss On the distribution to B is m None of these_ m $2O,0OO capital gain m $10,000 capital gain m 0 |
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Question 28
Z Co.'s recognized gain or loss on the distribution to C is
$70,000 capital gain
- None of these_
$20,000 capital gain
- $40,000 gain
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Question 29 Z Co.'s recognized gain or loss on the distribution to D is m <$1,600> capital loss m 0 m <$400> capital loss m None of these |
Transcribed Image Text:Z Co. adopts a plan of complete liquidation and makes the following pro rata
distributions to its shareholders (assume all are individuals and each has a $2,000
basis in the Z Co. stock):
A Cash
$40,000
Capital
B
Asset
FMV
$30,000
BASIS
$10,000
MORTGAGE $20,000
Capital
FMV
$50,000
Asset
BASIS
$10,000
MORTGAGE $80,000
Capital
FMV
$1,400
Asset
BASIS
$3,000
(Assume that Z Co. acquired the property distributed
to Din a Code 5 351 transfer 6 months before
adopting a plan of liquidation when the FMV of the
property was $1,800 and Z Co's basis was $3,000)
E Inventory FMV
$50,000
BASIS
$20,000
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VIEWStep 5: Determine the Z Co.'s recognized gain or loss on the distribution to C:
VIEWStep 6: Determine the Z Co.'s recognized gain or loss on the distribution to D:
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