Required information

Problem 11-74 (LO 11-6)

[The following information applies to the questions displayed below.]

Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder, Mark Ingram. The fair market value of the parcel is $60,200 and its tax basis is $37,200. Mark's basis in his stock is $30,400.

Problem 11-74 Part d

d.Assume the fair market value of the land is $26,000 rather than $60,200. How much gain must Mark recognize (if any) as a result of the distribution and what is his basis in the land?

Loss recognizedLand basis

$

26,000