Question
Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% and Pittro owns 50% of the stock
Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% and Pittro owns 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in a 351 or contribution to capital transaction) that are distributed in complete liquidation of the corporation.
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Assume that Osprey Corporation distributes the land to Pedro and the cash and equipment to Pittro.
a. Determine Ospreys recognized gain or loss on the distribution of land.
Osprey recognizes a gain of $______________ on the distribution of the land.
b. Determine Ospreys recognized gain or loss on the distribution of the equipment. The loss of $______________ on the equipment is allowed.
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