31. Breezy Corporation is owned 75% by Leticia and 25% by LaShawn. Breezy Corporation owns Cloud Corporation stock with a $45.000 adiusted basis and a $25.000 FMV. The stock 15 not disqualified property. As part of a complete liquidation, the Cloud Corporation stock is distributed to LaShawn. LaShawn's basis in her Breezy stock is $35,000. Breezy Corporation will recognize A) none of the above. B) a $15,000 loss. C) a $25,000 gain. D) no loss. 32. Lake City Corporation owns all of the stock in Columbia Corporation. Pursuant to a plan of complete liquidation, Columbia distributes land having a $500,000 FMV and a $200,000 basis to Lake City. Lake City's basis in the land will be A) 0. B) $200,000. C) $500,000. D) cannot be determined from the facts presented 33. Bronx Corporation acquires 100% of Aladin Corporation's stock from Aladin's shareholders for $600,000 cash. Aladin Corporation has assets with a $700,000 adjusted basis and an $900,000 FMV. The assets are subject to $300,000 in liabilities. Aladin Corporation shareholder purchased their stock six years ago for $350,000. Bronx Corporation's basis in the Aladin Corporation stock is A) $500,000 B) $300,000 C) $800,000 D) $600,000. Page Ref: C: 7-4. (Slide 7-12). 34. Green Corporation makes its first purchase of 30% of Nick Corporation stock on July 31 of this year. Green Corporation uses a calendar tax year. To use the Sec. 338 election, Green Corporation must purchase A) an additional 50% of Nick Corporation stock by July 30 of next year. B) an additional 50% of Nick Corporation stock by December 31 of this year. C) an additional 51% of Nick Corporation stock by December 31 of this year. D) an additional 51% of Nick Corporation stock by July 30 of next year. Page Ref: C:7-6; Ex: C:7-4. (Slide 7-8)