Business Entity

rporation purchased 90 percent of B Corporation's outstanding common stock for $1 million on January 1, 2006. Y, an individual, also purchased 10 percent of B Corporation's outstanding common stock for $111,111 on January 1, 2006. on June 15, 2016, B adopts a plan of liquidation and distributes assets with a fair market value of $1.2 million and a basis of $900,000 to Z. In that liquidation, B also distributes assets with a fair market value of $133,333 and a basis of $90,000 to Y. All the assets held by B that it distributes in liquidation were held by B for more than one year 18. What holding period does Z Corporation take in its received assets? a. Brand new b. 1 year c. Tacked As a result of the liquidating transaction, Y has a realized gain of: 19. a, $0 b. $22,222 C. $43,333 d. $133,333 As a result of the liquidating transaction, Z Corporation has a realized gain of: 20. a. $0 b. $200,000 c. $300,000 d. $1.2 million