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What are the tax consequences of liquidating distribution

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Question - Midland Corporation is liquidated on April 1, 2012 and its assets are distributed, pro rata, to its 10 equal and unrelated individual shareholders. The assets distributed are as follows:

a) marketable securities with a basis to Midland of $300,000, value at distribution of $250,000, and

b) land with a basis to Midland of $500,000, value at  distribution of $600,000.

What are the tax consequences of the liquidating distribution?

Reference no: EM131824581

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