Question
Corporation X owns a rental building with an FMV of $4,500, subject to a non-recourse mortgage of $5,000. X's basis in the building is $2,000.
Corporation X owns a rental building with an FMV of $4,500, subject to a non-recourse mortgage of $5,000. X's basis in the building is $2,000. X has E&P of $500. A, the only shareholder, has a basis of $300 in X stock. The rental building is distributed to A upon complete liquidation of X. For questions below ignore any tax that might apply.
What is the gain or loss recognized by A?
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
5th edition
134128524, 978-0134128528
