The stock of Loon Corporation is held as follows: 85% by Duck Corporation and 15% by Gerald, an individual. Loon Corporation is liquidated in December of the current year, pursuant to a plan adopted earlier in the year. Loon Corporation distributes land with a basis of $350,000 and fair market value of $390,000 to Gerald in liquidation of his stock interest. Gerald had a basis of $200,000 in his Loon stock. How much gain will Loon Corporation recognize in this liquidating distribution?
a. $0
b. $40,000
c. $190,000
d. $390,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The stock of Loon Corporation is held as follows: 85% by Duck Corporation and 15% by Gerald, an individual. Loon Corporation is liquidated ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Emery Mining Inc. recently reported $167,500 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.
Answers (1)
The government raises taxes by $100 billion. If the marginal propensity to consume is 0.6, what happens to the following? Do they rise or fall? By what amounts? a. Public saving. b. Private saving.
Answers (1)
Which of the following is NOT one of the three basic economic questions? A. what to produce B. how to produce it C. where to produce it D. who will consume what is produced
Answers (1)
Davis owns a property with a market value of $144,000. The county assessment for the property is 40% of its appraised value. What will a 4.3 mill special assessment tax levy cost Davis annually?
Answers (1)
Suppose students like to eat pepperoni pizza, bean and rice burritos, and hamburgers (made from beef) from the food establishments on campus. Which of the following is most likely to increase the quantity of hamburgers sold? a.
Answers (1)
New Questions in Business
Gabrielle and Juan both decided to skip buying health insurance coverage this year. Gabrielle has a really good immune system, and she hasn't needed to visit the doctor in a long time.
Answers (1)
Which does the news media do? Question 13 options: enable advertising entertain people warn about dangers provide information
Answers (1)
In an example, assume a contractor submits four different proposals to four different customers in a month's time for the amount of each contract valued at $120,000, $50,000, $250,000, and $80,000.
Answers (1)
Mona designs the packages and chooses the brand names for goods produced by her firm. mona is involved in which part of the marketing mix
Answers (1)
1. Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor
Answers (1)