Black Corporation acquired equipment in a 351 transaction with an adjusted basis of $200,000 and a fair market value of $110,000, on January 10, 2019. Black Corporation adopted a plan of liquidation on July 30, 2019. On November 15, 2019, when the value of the equipment had declined to $50,000, Black Corporation distributed the equipment to Chris, a shareholder who owns 20% of the stock in Black Corporation. Black Corporation never used the equipment for any business purpose during the time it owned the equipment. How much loss can Black Corporation recognize on the distribution of the equipment? a. $0. b. $150,000. c. $90,000. d. $60,000.

Caitlin owns 160 shares in Parakeet Corporation. Caitlin has a 25% beneficiary interest in her deceased grandmothers estate. The estate owns 200 shares in Parakeet Corporation. None of the other beneficiaries owns stock in Parakeet. In applying the 318 attribution rules to redemptions : a. The estate owns 240 shares. b. Caitlin owns 360 shares. c. Caitlin owns 210 shares. d. The estate owns 200 shares.

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