USA,

46) John has a basis of $38,000 in his 1,000 shares of Acorn Corporation stock (a capital asset) The stock was acquired three years ago. He receives the following distributions as part of a plan of liquidation of Acom Corporation Date March 31, 2020 July 15, 2020 November 15, 2020 January 15, 2021 Amount $10,000 10.000 10,000 10,000 What are the amount and character of the gain or loss that John will recognize during 2020? During 2021? 52) Brett, a 50% owner of Atlas Corporation's common stock, receives a distribution of a new class of Atlas preferred stock having a $40,000 FMV Bret's basis in the Atlas common stock is $30.000 its FMV is $80,000 on the distribution date One year later the corporation redeems the preferred stock for $75,000 At the time the stock was issued the corporation's current and accumulated E&P was $80,000. At the end of the year of redemption the current and accumulated E&P is $25,000. No other distributions out of E&P were made in the year of redemption What are the tax consequences of the transaction? 46) John has a basis of $38,000 in his 1,000 shares of Acorn Corporation stock (a capital asset) The stock was acquired three years ago. He receives the following distributions as part of a plan of liquidation of Acom Corporation Date March 31, 2020 July 15, 2020 November 15, 2020 January 15, 2021 Amount $10,000 10.000 10,000 10,000 What are the amount and character of the gain or loss that John will recognize during 2020? During 2021? 52) Brett, a 50% owner of Atlas Corporation's common stock, receives a distribution of a new class of Atlas preferred stock having a $40,000 FMV Bret's basis in the Atlas common stock is $30.000 its FMV is $80,000 on the distribution date One year later the corporation redeems the preferred stock for $75,000 At the time the stock was issued the corporation's current and accumulated E&P was $80,000. At the end of the year of redemption the current and accumulated E&P is $25,000. No other distributions out of E&P were made in the year of redemption What are the tax consequences of the transaction