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9. LO.2 The Liu Trust is short of cash. It is required to distribute $100,000 to Yang every year, and that payment is due in
9. LO.2 The Liu Trust is short of cash. It is required to distribute $100,000 to Yang every year, and that payment is due in six weeks. In its asset corpus, Liu holds a number of investments that are valued at $100,000. One of them has a tax basis to the trust of $60,000. Assuming that the trust agreement allows, what are the Federal income tax consequences if Liu distributes this stock to Yang
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