Calamity Corp. distributes five unimproved parcels of swampland to its shareholders as part of a complete liquidation.
Question:
Calamity Corp. distributes five unimproved parcels of swampland to its shareholders as part of a complete liquidation. The fair market value of each parcel is $25,000, and Calamity’s adjusted basis in each parcel is $40,000. What amount of gain or loss will Calamity Corp. recognize as a result of distributing the parcels?
a. $15,000 gain
b. No gain or loss will be recognized
c. $75,000 loss
d. $60,000 loss
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Related Book For 
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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