Inventory in the hands of coast corporation

Reference no: EM13136088

Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to William, a 25% shareholder. William has a $200,000 basis in his Coast stock. The land is inventory in the hands of Coast Corporation. Coast Corporation must recognize

a. no gain

b. $100,000 of ordinary income.

c. $100,000 of long-term capital gain.

d. $200,000 of ordinary income.

Reference no: EM13136088

Questions Cloud

Outline of government responsibilities : Please give a brief comparison and contrast the responsibilities of the national, state, and local governments.

The mcdonalds case studies : You will be expected to reference external material other than the textbook in order to complete this assignment successfully. Referencing must be in Harvard format.

Supplemental case controlling employee benefit costs : answering the questions in short essay format for the following case study..... SUPPLEMENTAL CASE Controlling Employee Benefit Costs

Legitimate scope of presidential emergency powers : Describe the legitimate scope of Presidential emergency powers. Do you believe our current President has over-stepped his authority in the interests of protecting national security? Explain.

Inventory in the hands of coast corporation : Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to William, a 25% shareholder. William has a $200,000 basis in his Coast stock. The land is inventory in the hands of Coast ..

Us worldwide tax-territorial tax : Do the US states' tax systems resemble the worldwide tax system or the territorial tax system? Why?

What is the emperical formula : anesthetic contains 64.9 % carbon, 13.5 % hydrogen, and 21.6 % oxygen by mass. At 120 degrees C and 750 mmHg, 1.00 L of the gaseous compound weighs 2.30 g.

Civic groups and associations : Please explain Tocqueville's ideas and observations in relation to American equality, political liberty, associations and civic groups

Compute dow earnings per share problem : On February 28, 2009, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31,2009, was $2,100,000. The income tax rate is 40%.

User Account

All Pages