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1. Midland Corporation is liquidated on April 1, 2012 and its assets are distributed, pro rata, to its 10 equal and unrelated individual shareholders. The
1. 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. Would your answer change if Midland was owned 60% by one individual, JKC, and 40% 4 other individuals, and the securities were contributed by the shareholders to Midland in 2009
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