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Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange Packard received land
Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange Packard received land with a fair market value of $331,000. Packard's basis in the State stock was $670,000. The land had a basis to State Company of $557,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives?
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