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Pumpkin Corporation is liquidating. It issued a liquidating distribution to its 40% shareholder, Squash Corporation, of land with a fair market value of $500,000. Squash's
Pumpkin Corporation is liquidating. It issued a liquidating distribution to its 40% shareholder, Squash Corporation, of land with a fair market value of $500,000. Squash's basis in its Pumpkin stock was $300,000. The land had a basis to Pumpkin of $600,000. What amount of gain does Squash recognize in the exchange and what is its basis in the land it receives
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