A Corporation owns 100% of the outstanding stock of B Corporation In a liquidation pursuant to 332, B distributed and transferred property to A with a fair market value of $80,000 (basis $30,000).How much gain does B realize?

a.$50,000

b.$52,000

c.$2,000

d.$0

Assets are grouped into five classes under provisions of 338. The method of establishing the value of Class VII, or intangible, assets in the nature of good-will or going concern value is

a.To determine the fair market value by appraisal on election date.

b.To assign 20% of fair market value to intangible assets according to the 20% allocation rule.

c.To assign what remains, after fair market value allocations to the four other classes, to the goodwill or going concern value.

d.All of the above

From the seller's perspective, a sale of stock may be preferable to a sale of assets because

a.The purchaser obtains not only all of the assets but all of the liabilities.

b.When product liability or adjustments in prior taxes are unknown, the seller may be required to indemnify the buyer for any undisclosed liabilities.

c.A sale of stock results in only a single tax.

d.Both a and c, but not b.