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The stock in Palm Corporation is held equally by two brothers. One year before its liquidation, the shareholders transfer property (basis of $350,000, fair market
The stock in Palm Corporation is held equally by two brothers. One year before its liquidation, the shareholders transfer property (basis of $350,000, fair market value of $200,000) to Palm Corporation in return for stock. In a current year liquidation, Palm Corporation transfers the property (now worth $150,000) pro rata to the brothers. What amount of loss will Palm Corporation recognize on the distribution?
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