How much gain must Mark recognize

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Question - Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder, Mark Ingram. The fair market value of the parcel is $60,200 and its tax basis is $37,200. Mark's basis in his stock is $30,400.

Assume the fair market value of the land is $26,000 rather than $60,200. How much gain must Mark recognize (if any) as a result of the distribution and what is his basis in the land?

Reference no: EM132606395

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