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Jones Mills, Inc. (JMI) decided to liquidate its wholly owned subsidiary, Most Help, Inc. (MH). MH had the following tax accounting balance sheet: Appreciation (Depreciation)
Jones Mills, Inc. (JMI) decided to liquidate its wholly owned subsidiary, Most Help, Inc. (MH). MH had the following tax accounting balance sheet: Appreciation (Depreciation) Cash Building Land Total EMV $239,750 63,000 176,750 $479,500 Adjusted Basis $239,750 19,500 225,000 $484,250 43,500 (48,250) $ (4,750) a. What amount of gain or loss does MH recognize in the complete liquidation? (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Gain or loss recognized b. What amount of gain or loss does JMI recognize in the complete liquidation? (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Gain or loss recognized c. What is JMI's tax basis in the building and land after the complete liquidation? Building Land Tax basis
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