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32. Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in a § 351 or contribution to capital transaction) that are distributed in complete liquidation of the corporation. (LO.4) Cash Land Equipment Adjusted Basis $300,000 200,000 250,000 Fair Market Value $300,000 440,000 140,000

32. Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in a § 351 or contribution to capital transaction) that are distributed in complete liquidation of the corporation. (LO.4) Cash Land Equipment Adjusted Basis $300,000 200,000 250,000 Fair Market Value $300,000 440,000 140,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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32. Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in a § 351 or contribution to capital transaction) that are distributed in complete liquidation of the corporation. (LO.4) Cash Land Equipment Adjusted Basis $300,000 200,000 250,000 Fair Market Value $300,000 440,000 140,000
Transcribed Image Text:32. Osprey Corporation stock is owned by Pedro and Pittro, who are unrelated. Pedro and Pittro each own 50% of the stock in the corporation. Osprey has the following assets (none of which were acquired in a § 351 or contribution to capital transaction) that are distributed in complete liquidation of the corporation. (LO.4) Cash Land Equipment Adjusted Basis $300,000 200,000 250,000 Fair Market Value $300,000 440,000 140,000
Assume that Osprey Corporation distributes the land to Pedro and the cash and equipment to Pittro. a. Determine Osprey's recognized gain or loss on the distribution of land. b. Determine Osprey's recognized gain or loss on the distribution of the equipment.
Transcribed Image Text:Assume that Osprey Corporation distributes the land to Pedro and the cash and equipment to Pittro. a. Determine Osprey's recognized gain or loss on the distribution of land. b. Determine Osprey's recognized gain or loss on the distribution of the equipment.
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