Qualifying stock redemption problem

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Yellow Corporation transfers land (basis of $210,000, fair market value of $300,000) to Joe, a shareholder, to carry out a qualifying stock redemption. The land is distributed subject to a $320,000 liability. With respect to the redemption:

a. Yellow Corporation will recognize a gain of $20,000

b. Yellow Corporation will recognize a gain fo $90,000

c. Yellow Corporation will recognize a gain of $110,000

d. Yellow Corporation will not recognize a gain

e. None of the above

Reference no: EM13158081

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