PART A: Prestege is owned 100% by Jep Williams. Jep’s tax basis in his Prestege shares is 5,900,000.
Prestege has the following assets and liabilities when it proposes to liquidate.
Asset |
FMV |
Tax Basis |
Cash |
200,000 |
200,000 |
Equipment |
3,300,000 |
1,800,000 |
Inventory |
800,000 |
600,000 |
Land |
900,000 |
700,000 |
Building |
4,700,000 |
2,300,000 |
Goodwill |
3,000,000 |
-0- |
Totals |
12,900,000 |
5,600,000 |
REQUIRED:
PART A: Prestege is owned 100% by Jep Williams. Jep’s tax basis in his Prestege shares...
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