The options for the answers are

1. a loss limited by vance's stock basis, a tax free return of capital, double taxation

2. Avoids double taxation, results in a tax free return of capital, results in rose recognizing a gain but not vance

Discussion Question 13-24 (LO. 6) Vance owns all of the stock of Rose, Inc., a C corporation. The fair market value of the stock (and Rose's assets) is about six times Vance's adjusted basis for the stock. He is negotiating with an investor group for the sale of the corporation. Complete the paragraph below regarding the tax issues for Vance. The sale of the assets by the corporation (or the distribution of the assets to Vance to make the sale) followed by the liquidation of the corporation results in Rose to the investor group The sale of the stock of Discussion Question 13-24 (LO. 6) Vance owns all of the stock of Rose, Inc., a C corporation. The fair market value of the stock (and Rose's assets) is about six times Vance's adjusted basis for the stock. He is negotiating with an investor group for the sale of the corporation. Complete the paragraph below regarding the tax issues for Vance. The sale of the assets by the corporation (or the distribution of the assets to Vance to make the sale) followed by the liquidation of the corporation results in Rose to the investor group The sale of the stock of