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ABC Corporation (ABC owns 90% of the single class of stock in Subsidiary Corporation The other 10% is owned by Rosie an individual ABC's basis

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ABC Corporation (ABC owns 90% of the single class of stock in Subsidiary Corporation The other 10% is owned by Rosie an individual ABC's basis in its subsidiary stock is $ 200,000 and Rosie's basi la 500,000. Subsidiary distributes property A having an adjusted basis of $150.000 and an FMV of $720,000 to ABC, and property with a FMV of $80,000 and an adjusted basis of 500,000 to Rosie in a liquidating distribution. Subsidiary had $10 million of earnings and profits at the date of liquidation What basis do ABC and Rosie have in the property received in the liquidating distribution ? OA ABC basis in property A $150,000, Rosie's basis in property B $90,000 OB. ABC basis in property A $200,000, Rosie's basis in property 8 $60,000 OG ABC basis in property A5720,000, Rosie's basis in property B $80,000 OD. ABC base in property A $150,000: Rosie's basis in property B $80,000 in property B

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