Tittany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Fumiture ROP, After liquilating tss temminirg Inventory and paying off its remaining tiabilities, ROF had the following tax accounting bationce shewe. Under the terms of the agreement. Tiffany will recelve the $232750 cash in exchange for her 50 percent intereat in ROF. Titfeny/s tax basis in her ROF stock is $62,000. Carlos will recelve the bullding and land in exchange for his 50 percent interest in ROF. His tian basis in the ROF stock is $105,500. Assume for purposes of this problem that the cash avaifable to distribute to the sharehaiders bat been reduced by any tax paid by the corporation on gain recognized as a result of the liquidetion Note: Negstive amounts should be indicated by a minus sign. Required: a. What amount of gain or loss does ROF recognize in the complete liquidation? b. What amount of gain or loss does Tiffany recognize in the complete liquidotion? c. What amount of gain or loss does Carlos recognize in the complete liquidetion? d. What is Carlos's adjusted tax basis in the buiding and land after the complete liquidation? Assume Tiffonty owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffony will recelve $186,200 in the liquidation and Carlos will receive the lond and buliding plus $46,550. e. What amount of gain or loss does ROF recognize in the complete llquidation? Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $186,200 in the lquidation and Carlos will recelve the land and buliding plus $46,550. 1. What amount of gain or loss does Tiffany recognize in the complete liquidation? Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $186,200 in the liquidatian and Carlos will recelve the land and bulding plus $46,550 g. What amount of gain or loss does Carlos recognize in the complete liquidation? Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $186,200 in the liquidatian and Carlos will recelve the land and buliding plus $46,550. h. What is Carlos's adjusted tax basis in the building and land after the complete liquidation? Tittany and Carlos decided to liquidate their jointly owned corporation, Royal Oak Fumiture ROP, After liquilating tss temminirg Inventory and paying off its remaining tiabilities, ROF had the following tax accounting bationce shewe. Under the terms of the agreement. Tiffany will recelve the $232750 cash in exchange for her 50 percent intereat in ROF. Titfeny/s tax basis in her ROF stock is $62,000. Carlos will recelve the bullding and land in exchange for his 50 percent interest in ROF. His tian basis in the ROF stock is $105,500. Assume for purposes of this problem that the cash avaifable to distribute to the sharehaiders bat been reduced by any tax paid by the corporation on gain recognized as a result of the liquidetion Note: Negstive amounts should be indicated by a minus sign. Required: a. What amount of gain or loss does ROF recognize in the complete liquidation? b. What amount of gain or loss does Tiffany recognize in the complete liquidotion? c. What amount of gain or loss does Carlos recognize in the complete liquidetion? d. What is Carlos's adjusted tax basis in the buiding and land after the complete liquidation? Assume Tiffonty owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffony will recelve $186,200 in the liquidation and Carlos will receive the lond and buliding plus $46,550. e. What amount of gain or loss does ROF recognize in the complete llquidation? Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $186,200 in the lquidation and Carlos will recelve the land and buliding plus $46,550. 1. What amount of gain or loss does Tiffany recognize in the complete liquidation? Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $186,200 in the liquidatian and Carlos will recelve the land and bulding plus $46,550 g. What amount of gain or loss does Carlos recognize in the complete liquidation? Assume Tiffany owns 40 percent of the ROF stock and Carlos owns 60 percent. Tiffany will receive $186,200 in the liquidatian and Carlos will recelve the land and buliding plus $46,550. h. What is Carlos's adjusted tax basis in the building and land after the complete liquidation
