Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder, Mark Ingram. The fair market value of the parcel is $60,200, and its tax basis is $37,200. Marks basis in his stock is $30,400.

Problem 22-74 Part b (Algo)

b. How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land?

Gain recognized
Land basis

c. Assume the fair market value of the land is $26,000 rather than $60,200. What amount of gain or loss, if any, does Alabama Corporation recognize on the distribution?

d. Assume the fair market value of the land is $26,000 rather than $60,200. How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land?