Elm Corporation has 100 shares of stock outstanding of which Oak Corporation owns 75 shares with a basis of $10,000, and Sherman Forest owns 25 shares with a basis of $30,000. Elm Corporation has a $50,000 net operating loss carryover and the following assets (all held long-term):
Basis |
Fair Market Value |
|
Cash |
$20,000 |
$20,000 |
Installment Note |
$10,000 |
$40,000 |
Land |
$1,000 |
$10,000 |
Equipment (all Sec. 1245 recapture) |
$5,000 |
$10,000 |
$36,000 |
$80,000 |
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Elm Corporation has 100 shares of stock outstanding of which Oak Corporation owns 75 shares with...
31. Breezy Corporation is owned 75% by Leticia and 25% by LaShawn. Breezy Corporation owns Cloud Corporation stock with a $45.000 adiusted basis and a $25.000 FMV. The stock 15 not disqualified property. As part of a complete liquidation, the Cloud Corporation stock is distributed to LaShawn. LaShawn's basis in her Breezy stock is $35,000. Breezy Corporation will recognize A) none of the above. B) a $15,000 loss. C) a $25,000 gain. D) no loss. 32. Lake City Corporation owns...
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