BA 4310 Foundations of Taxation Assignment

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BA 4310 Foundations of Taxation Assignment - Michigan Technological University, USA

Problem - A Corp (a "C" corporation) has a sole shareholder, K. K has 1000 shares of A Corp stock, basis = $30000. A distributes the following assets in complete liquidation of the corp. to K:

 

A's Basis

FMV

Land

20000

30000

Inventory

4000

14000

Machinery

10000

20000

Required - Calculate the gain recognized by A on the distribution, K's basis in the assets received, and any gain/loss recognized by K on the distribution.

Reference no: EM132464673

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