Determining the amount of gain or loss

Assignment Help Accounting Basics

Reference no: EM13136301

Texas Corporation is undergoing a complete liquidation and distributes land to Robert, one of its shareholders, in exchange for all of Robert's stock. The land has a basis of $300,000 and a FMV of $400,000 on Texas Corporation's books and is subject to a $325,000 liability. Robert assumes the liability on the property. Robert's basis in his Texas Corporation stock is $100,000. What is the amount of gain or loss recognized by Robert on the distribution?

a. $175,000 gain

b. $25,000 gain

c. No gain or loss is recognized

d. $25,000 loss

Reference no: EM13136301

Questions Cloud

What mass of f2 is needed : What mass of F2 is needed to produce 167 g of PF3 if the reaction has a 77.0% yield?

Create speech : Write an outline in complete sentence form. Include a thesis statement (which may be spoken); a purpose statement, indicating the response from the audience you wish to achieve (which is not usually spoken); an introduction; a body, including support..

Confidence level for true population of students who own car : When 343 college students are randomly selected and surveyed it is found that 110 own a car. find a 99% confidence level for the true population of all college students who own a car.

How effective are such laws in protecting the public : Several laws, post recently Sarbanes-Oxley, have provided provisions requiring high ranking officials to certify that they have acted ethically in corporate governance and financial reporting. How effective are such laws in protecting the public? ..

Determining the amount of gain or loss : Robert assumes the liability on the property. Robert's basis in his Texas Corporation stock is $100,000. What is the amount of gain or loss recognized by Robert on the distribution?

Calculate the final pressure of the sample : At 9.°C and 1.40 atm pressure, a sample of helium gas occupies a volume of 5.10 L. The sample is compressed and heated to 60.°C. Calculate the final pressure of the sample, if the final volume is 3.64 L.

How effective are legal processes in regulating corporate : Many professionals believe it is impossible to regulate ethics. Yet, the SEC and other federal agencies provide rules, regulations, and laws surrounding corporate governance. How effective are the legal processes in regulating corporate governance..

Calculate the atomic mass of rubidium : Rubidium has two naturally occurring isotopes: Rb-85 with mass 84.9118 amu and a natural abundance of 72.17%, and Rb-87 with mass 86.9092 amu and a natural abundance of 27.83%.

How should an analyst treat discontinued operations : Describe the accounting treatment for discontinued operations. How should an analyst treat discontinued operations?

User Account

All Pages