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Lake City Corporation owns all of the stock in Columbia Corporation. Pursuant to a plan of completeliquidation, Columbia distributes land having a$500,000 FMV and a$200,000
Lake City Corporation owns all of the stock in Columbia Corporation. Pursuant to a plan of completeliquidation, Columbia distributes land having a$500,000 FMV and a$200,000 basis to Lake City. LakeCity's basis in the land will be
A.
$500,000.
B.
$200,000.
C.
0.
D.
cannot be determined from the facts presented
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Managerial Accounting
Authors: Wendy M. Tietz, Louis Beaubien, Karen W. Braun
3rd Canadian edition
