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What is the amount and character of Bruce recognized gain

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Problem - Bruce Banner purchased 5,000 shares of Gamma Radiation Corporation's (GRC) stock on May 22, 1984, for $60,000. On September 1, 2016, Bruce received the following as a distribution in cancellation of his stock in a complete liquidation GRC:

Fair Market Value

Cash $50,000

Equipment $15,000

Land $45,000

Building $150,000

Liabilities ($30,000)

Required -

a. What is the amount and character of Bruce's recognized gain?

b. What is Bruce's basis for each of the items of property received?

c. When does the holding period for each of the items of property begin?

d. How would your answer to (a) change if Bruce had purchased 2,000 shares of GCR 6 months ago for $12,500, the remaining 3,000 shares of GCR 5 years ago for $47,500.

Reference no: EM132704854

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