Business Entity

z Corpor 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. ation purchased 90 percent of B Corporation's outstanding common stock for $1 million As a result of the liquidating transaction, B Corporation has a recognized gai 21. n of: a. $0 b. $43,333 c. $300,000 d. $343,333 What holding period does Y take in the assets that she receives? 22. Brand new a. b.