Reference no: EM133155482
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 $64,450, and its tax basis Is $40,200. Mark's basis In his stock is $32,650.
Required -
a. What amount of gain or loss, if any, does Alabama Corporation recognize on the distribution?
b. How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land?
c. Assume the fair market value of the land Is $28,500 rather than $64,450. What amount of gain or loss, if any, does Alabama Corporation recognize on the distribution?
d. Assume the fair market value of the land is $28,500 rather than $64,450. How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land?
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