A cash-method corporation adopts a plan of complete liquidation and distributes the following assets to its shareholders:
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A cash-method corporation adopts a plan of complete liquidation and distributes the following assets to its shareholders:
∎ A truck that was purchased for $25,000, is worth $18,000, and has a basis of $11,000.
∎ An installment note receivable with a remaining face amount of $20,000, resulting from a sale of a warehouse for $75,000 seven years ago in which the warehouse's basis at the time of sale was $25,000.
∎ Accounts receivable of $7,000.
∎ Supplies and small tools previously expensed, worth $350.
What gains are recognized by the liquidating corporation on the distributions in complete liquidation?
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Related Book For 
CCH Federal Taxation Basic Principles 2020
ISBN: 9780808051787
2020 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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