How much gain or loss do the minority shareholders recognize

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Question - W Corp. owns 90% of B Corp. The remaining 10% is owned by unrelated parties. In a Sect. 332 qualified liquidation, B Corp. distributes property to W Corp. with a fair market value of $80,000(basis $30,000). B Corp. also distributed property to the minority shareholders with a fair market value of $11,000 (basis $9,000).

Required -

a) How much gain or loss does B Corp. recognize?

b) How much gain or loss do the minority shareholders recognize?

Reference no: EM133126486

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