r's stock. The land has a fair market value (FMV) of $40,000 and an adjusted basis of $23,000. The shareholder's basis in the co
r's stock. The land has a fair market value (FMV) of $40,000 and an adjusted basis of $23,000. The shareholder's basis in the co
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 54P
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A corporation is undergoing a complete liquidation. It distributes land to an individual shareholder in exchange for all of the shareholder's stock. The land has a fair market value (FMV) of $40,000 and an adjusted basis of $23,000. The shareholder's basis in the corporation's stock is $30,000. Which gain must this shareholder recognize on the distribution?
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