Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining llabilities, ROF had the following tax accounting balance sheet: Under the terms of the agreement, Tiffany will recelve the $343,500 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $67,500. Carlos will recelve the buliding and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash avaliable to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) Problem 19.63 Part a (Algo) a. What amount of gain or loss does ROF recognize in the complete llquidation? Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Fumiture (ROF). After liquidating its remaining inventory and paying off its remaining llablities, ROF had the following tax accounting balance sheet: Under the terms of the agreement, Tiffony will recelve the $343,500 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $67,500, Carlos will recelve the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash avallable to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indleated by a minus sign.) Problem 19-63 Part b (Algo) b. What amount of gain or loss does Tiffany recognize in the complete liquidation? Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining llabilities, ROF had the following tax accounting balance sheet: Under the terms of the agreement, Tiffany will recelve the $343,500 cash in exchange for her 50 percent interest in ROF. Tiffany's tax basis in her ROF stock is $67,500, Carlos will recelve the building and land in exchange for his 50 percent Interest in ROF. His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) Problem 19.63 Part c (Algo) c. What amount of gain or loss does Carios recognize in the complete liquidation? Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities. ROF had the following tax accounting balance sheel: Under the terms of the agreement, Tiffany will recelve the $343.500 cash in exchange for her 50 percent interest in ROF Tfffany's tax basis in her ROF stock is $67,500. Carlos will recelve the bulling and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negatlve amounts should be indicated by a minus sign.) Problem 19-63 Part d (Algo) d. What is Carlos's adjusted tax basis in the bullding and land after the complete liquidation? Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF. After liquidating its remaining inventory and paying off its remaining lioblities, ROF hod the following tax accounting balance sheet: Under the terms of the agreement, Tiffany will receive the $343,500 cash in exchange for her 50 percent interest in ROF : Tiffany's tax basis in her ROF stock is $67,500, Corlos will receive the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash avallable to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidotion. (Negative amounts should be indicated by a minus sign.) Problem 19.63 Part e (Algo) Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will recelve $274,800 in the liquidation and Carlos will recelve the land and buliding plus $68,700 e. What amount of gain of loss does ROF recognize in the complete llquidation? Tiffany and Carlos decided to liquldate their jointly owned corporation. Royal Oak Furniture (ROF). After liquidating its romainina inventory and paying off its remaining lloblities, ROF had the following tax accounting balance sheet Under the terms of the agreement. Titfany will receive the $343,500 cash in exchange for her 50 percent interest in ROF. Tiflany's tax basis in her ROF stock is $67,500, Carlos will recelve the bullding and land in exchange for his 50 percent interest in ROF His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) Problem 19.63 Partf (Algo) Assume Tiffany owns 40 percent of the ROF stock and Catlos owns 60 percent. Tiffany will receive $274,800 in the liquidation and Cartos wil recelve the land and bullding plus $68,700. t. What amount of gain or loss does Tiffany recognize in the complete liquidation? Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF), After liquidating its remaining inventory and paying off its remaining llabilities, ROF had the following tax accounting bolance sheet: Under the terms of the agreement. Tiffany will recelve the $343,500 cash in exchange for her 50 percent interest in ROF Tiffany's tax basis in her ROF stock is $67,500. Carlos will recelve the building and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) Problem 19-63 Part g (Algo) Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $274,800 in the llquidation and Carlos will recelve the land and building plus $68,700. 9. What amount of gain or loss does Carios recognize in the complete liquidation? Tiffany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Furniture (ROF). After liquidating its remaining inventory and paying off its remaining liabilities, ROF had the following tax accounting balance sheet: Under the terms of the agreement, Tiffany wil receive the $343.500 cash in exchange for her 50 percent interest in ROF. Tiffeny's tax basis in her ROF stock is $67,500. Carlos will recelve the bullding and land in exchange for his 50 percent interest in ROF. His tax basis in the ROF stock is $142,500. Assume for purposes of this problem that the cash avallable to distribute to the shoreholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be Indicated by a minus sign.) Problem 19-63 Part h (Algo) Assume Tiffany owns 40 percent of the ROF stock and Carios owns 60 percent. Tiffany will receive $274.800 in the liquldation and Carlos will recelve the land and building plus $68,700. h. What is Carios's adjusted tax basis in the building and land after the complete liquidation