Question
The Raddison Corporation acquired the following property from its two shareholders, Sement and Hopkins in a Section 351 organization: From SementBuilding FMV 500,000 Basis 150,000
The Raddison Corporation acquired the following property from its two shareholders, Sement and Hopkins in a Section 351 organization:
From SementBuilding FMV 500,000 Basis 150,000
From HopkinsEquipment FMV 200,000 Basis 260,000
At the time of complete liquidation of the corporation, relevant information regarding the property is as follows:
From Sement Building FMV 225,000 Basis 50,000
From HopkinsEquipment FMV 100,000 Basis 180,000
Calculate the gain or loss recognized by Raddison Corp in each of the following independent situations:
Part A- Sement is a 40% shareholder and Hopkins is a 60% shareholder. The building is distributed to Sement and the equipment is distributed to Hopkins four years after the corporation was formed.
Part B- Sement is a 60% shareholder and Hopkins is a 40% shareholder. The building is distributed to Sement and the equipment is distributed to Hopkins four years after the corporation was formed.
Part C- Sement is a 40% shareholder and Hopkins is a 60% shareholder. The equipment is distributed to Sement and the building is distributed to Hopkins twenty months after the corporation was formed
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