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X Corporation had two shareholders: C corporation and D corporation. C owned 85 shares of X and D owned 15 shares of X. C's adjusted
- X Corporation had two shareholders: C corporation and D corporation. C owned 85 shares of X and D owned 15 shares of X. C's adjusted basis is $1,000 per share and D's adjusted basis is $500 per share.Pursuant to a plan of liquidation, X distributed an asset FMV $850,000 adjusted basis $900,000 to C and an asset FMV $200,000, adjusted basis $210,000 but subject to a liability of $50,000 to D.
- What income, gain or loss, if any, does C recognize as a result of the liquidation?
- What income, gain or loss, if any, does D recognize as a result of the liquidation?
- What income, gain or loss, if any does X recognize as a result of the liquidation?
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International Accounting
Authors: Frederick D. Choi, Gary K. Meek
7th Edition
978-0136111474, 0136111475
