123 5. Due to economic conditions, Parson, Inc., was forced to distribute marketable securities with an adjusted basis of $110,000 and a FMV of $131,000 as part of a partial liquidation. The distributee was Mr. Anderson, who had owned 90% of Parson's stock with an adjusted basis of $125,000. Scroll down to complete all parts of this task. Calculate the amount of gain, if any, that should be reported by the corporation for each of the following liquidations. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (O). Then, select from the option list provided the character of the gain, if any, for each liquidation below. Each choice may be used once, more than once, or not at all. Liquidation Gain amount Character 123 1. Bing, Inc., distributed marketable securities in redemption of its stock in a complete liquidation. These securities had a basis of $300,000 and a FMV of $425,000 on the distribution date. 122 123 ! 3. Cell Corp. owned 95% of both the total value and the voting stock of Phone Corp. Cell's basis in the Phone stock was $375,000 when it received a lump sum liquidating distribution of property as a result of the redemption of all of Phone's stock. The property had a FMV of $600,000 and an adjusted basis of $400,000. Both companies are C corporations. 123 distributodo 123 4. Melekin, Inc., distributed Sec. 1231 land with an adjusted basis of $135,000 to its sole shareholder as part of a complete liquidation plan. The land was subject to a $165,000 mortgage, which the shareholder assumed for legitimate business purposes. The FMV of the land on the distribution date was $150,000. amic conditione 123 AI! Select an option below O Capital gain Section 1231 gain No gain recognized 123 IM 2. Rascal Corporation distributed Sec. 1231 land with a FMV of $1.2 million and an adjusted basis of $950,000 under a plan of partial liquidation under Sec. 302(b)(4) rules. The distribution was to an individual shareholder whose basis in the stock interest redeemed was $800,000. 123 10 123 5. Due to economic conditions, Parson, Inc., was forced to distribute marketable securities with an adjusted basis of $110,000 and a FMV of $131,000 as part of a partial liquidation. The distributee was Mr. Anderson, who had owned 90% of Parson's stock with an adjusted basis of $125,000. Scroll down to complete all parts of this task. Calculate the amount of gain, if any, that should be reported by the corporation for each of the following liquidations. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (O). Then, select from the option list provided the character of the gain, if any, for each liquidation below. Each choice may be used once, more than once, or not at all. Liquidation Gain amount Character 123 1. Bing, Inc., distributed marketable securities in redemption of its stock in a complete liquidation. These securities had a basis of $300,000 and a FMV of $425,000 on the distribution date. 122 123 ! 3. Cell Corp. owned 95% of both the total value and the voting stock of Phone Corp. Cell's basis in the Phone stock was $375,000 when it received a lump sum liquidating distribution of property as a result of the redemption of all of Phone's stock. The property had a FMV of $600,000 and an adjusted basis of $400,000. Both companies are C corporations. 123 distributodo 123 4. Melekin, Inc., distributed Sec. 1231 land with an adjusted basis of $135,000 to its sole shareholder as part of a complete liquidation plan. The land was subject to a $165,000 mortgage, which the shareholder assumed for legitimate business purposes. The FMV of the land on the distribution date was $150,000. amic conditione 123 AI! Select an option below O Capital gain Section 1231 gain No gain recognized 123 IM 2. Rascal Corporation distributed Sec. 1231 land with a FMV of $1.2 million and an adjusted basis of $950,000 under a plan of partial liquidation under Sec. 302(b)(4) rules. The distribution was to an individual shareholder whose basis in the stock interest redeemed was $800,000. 123 10