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Required information [The following information applies to the questions displayed below.] Jones Mills, Inc. (JMI) decided to liquidate its wholly owned subsidiary, Most Help, Inc.
Required information [The following information applies to the questions displayed below.] Jones Mills, Inc. (JMI) decided to liquidate its wholly owned subsidiary, Most Help, Inc. (MH). MH had the following tax accounting balance sheet: Appreciation (Depreciation) Cash Building Land FMV $233, 450 54,700 178,750 $466,900 Adjusted Basis $ 233,450 10,200 230,000 $ 473,650 44,500 (51,250) (6,750) Total $ a. What amount of gain or loss does MH recognize in the complete liquidation? (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Gain or loss recognized Jones Mills, Inc. (JMI) decided to liquidate its wholly owned subsidiary, Most Help, Inc. (MH). MH had the following tax accounting balance sheet: Appreciation (Depreciation) Cash Building Land FMV $233,450 54,700 178,750 $466,900 Adjusted Basis $ 233,450 10,200 230,000 $ 473,650 44,500 (51,250) (6,750) Total $ b. What amount of gain or loss does JMI recognize in the complete liquidation? (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Gain or loss recognized Jones Mills, Inc. (JMI) decided to liquidate its wholly owned subsidiary, Most Help, Inc. (MH). MH had the following tax accounting balance sheet: Appreciation (Depreciation) Cash Building Land FMV $233, 450 54,700 178,750 $466,900 Adjusted Basis $ 233,450 10,200 230,000 $ 473,650 44,500 (51,250) (6,750) Total $ c. What is JMI's tax basis in the building and land after the complete liquidation? Building Land Tax basis
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