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The Trap Corporation liquidates. One shareholder. who owned 30 percent of the stock, receives for the stock, inventory worth $90,000 with a basis of $70.000.

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The Trap Corporation liquidates. One shareholder. who owned 30 percent of the stock, receives for the stock, inventory worth $90,000 with a basis of $70.000. Trap Corporation will recognize: $20,000 of capital gain $20,000 of ordinary income $20,000 of Sec. 1231 gain No gain

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