Abigail Adams, a calendar-year individual taxpayer, is a 10 percent owner in Acme Company. In Year 1, Abigail received a liquidating distribution from Acme Company. Information about the asset distributed to Abigail, Abigail's basis in her ownership interest immediately before the distribution, and Acme Company's total liabilities at the time of the liquidating distribution is provided in the exhibit above.
Using the information provided in the exhibit, calculate the amount of gain or loss recognized by Acme Company and Abigail (including flow-through income or losses, if applicable), and Abigail's basis in the asset distributed, assuming that Acme Company is: 1) a C corporation; 2) an S corporation; 3) a general partnership; and 4) a limited liability company (LLC). Enter the appropriate amounts in the table below. Enter gains as positive values and losses as negative values. If the amount is zero, enter a zero (0).
13 Distribution Information EXHIBITS C D close all exhibits Acme Company Liquidating Distribution to 10 Percent Owner Distribution Information Pre-distribution basis in ownership interest $300,000 total liabilities at the time of the liquidating distribution is provided in the exhibit above. Assets distributed: Using the information provided in the exhibit, calculate the amount of gain or loss recognized by Acme Company and Abigail (including flow-through income or losses, if applicable), and Abigail's basis in the asset distributed, assuming that Acme Company is: 1) a C corporation; 2) an S corporation; 3) a general partnership, and 4) a limited liability company (LLC). Enter the appropriate amounts in the table below. Enter gains as positive values and losses as negative values. If the amount is zero, enter a zero (O). Land (purchased by Acme as an investment): Fair market value Adjusted basis $270,000 $150,000 Acme Company's total liabilities: B D Nonrecourse (secured) debt on building Recourse debt: Trade accounts payable Total liabilities $400,000 $100,000 $500,000 1 Total Gain Total Gain (Loss) (Loss) Abigail's Tax Recognized by Recognized by Basis in Asset Acme Company Abigail Distributed 123 123 2 Acme Company Inc.- Corporation 3 Acme Company Inc.-S Corporation 123 123 123 123 123 123 4 Acme Company General Partnership 123 123 5 Acme Company LLC (limited liability company) 123 13 Distribution Information EXHIBITS C D close all exhibits Acme Company Liquidating Distribution to 10 Percent Owner Distribution Information Pre-distribution basis in ownership interest $300,000 total liabilities at the time of the liquidating distribution is provided in the exhibit above. Assets distributed: Using the information provided in the exhibit, calculate the amount of gain or loss recognized by Acme Company and Abigail (including flow-through income or losses, if applicable), and Abigail's basis in the asset distributed, assuming that Acme Company is: 1) a C corporation; 2) an S corporation; 3) a general partnership, and 4) a limited liability company (LLC). Enter the appropriate amounts in the table below. Enter gains as positive values and losses as negative values. If the amount is zero, enter a zero (O). Land (purchased by Acme as an investment): Fair market value Adjusted basis $270,000 $150,000 Acme Company's total liabilities: B D Nonrecourse (secured) debt on building Recourse debt: Trade accounts payable Total liabilities $400,000 $100,000 $500,000 1 Total Gain Total Gain (Loss) (Loss) Abigail's Tax Recognized by Recognized by Basis in Asset Acme Company Abigail Distributed 123 123 2 Acme Company Inc.- Corporation 3 Acme Company Inc.-S Corporation 123 123 123 123 123 123 4 Acme Company General Partnership 123 123 5 Acme Company LLC (limited liability company) 123
