Question
In the current year, Dove Corporation (E & P of $1,000,000) distributes all of its property in a complete liquidation. Alexandra, a shareholder, receives land
In the current year, Dove Corporation (E & P of $1,000,000) distributes all of its property in a complete liquidation. Alexandra, a shareholder, receives land having a fair market value of $185,000. Dove Corporation had purchased the land as an investment three years ago for $115,000, and the land was distributed subject to a $75,000 liability. Alexandra took the land subject to the $75,000 liability. What is her basis in the land?
| a. | $115,000 | |
| b. | $185,000 | |
| c. | $0 | |
| d. | $110,000 |
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Cornerstones Of Financial And Managerial Accounting Fnec 220
Authors: Jay S. Rich, Jeff Jones, Dan L. Heitger, Maryanne M. Mowen, Don R. Hansen
2nd Edition
1133275583, 978-1133275589
