Ellen received a liquidating distribution from Lopas Corp. as part of a redemption of all of its
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Ellen received a liquidating distribution from Lopas Corp. as part of a redemption of all of its stock. Ellen’s basis for her Lopas stock was
$13,000. In exchange for her stock, Ellen received property with a $10,000 basis and a
$35,000 fair market value that is subject to a
$18,000 mortgage, and also received cash of
$15,000.
a. What is Ellen’s realized and recognized gain from this complete liquidation?
b. What is Ellen’s tax basis for the non-cash property he received?
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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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