4 Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard received land with a fair market value of $445,000. Packard's basis in the State stock was $677,500. The land had a basis to State Company of $625,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives? Multiple Choice $180,000 loss recognized by State and a basis in the land of $445,000 to Packard. $180,000 loss recognized by State and a basis in the land of $625,000 to Packard. No loss recognized by State and a basis in the land of $445,000 to Packard. No loss recognized by State and a basis in the land of $625,000 to Packard.
4 Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard received land with a fair market value of $445,000. Packard's basis in the State stock was $677,500. The land had a basis to State Company of $625,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives? Multiple Choice $180,000 loss recognized by State and a basis in the land of $445,000 to Packard. $180,000 loss recognized by State and a basis in the land of $625,000 to Packard. No loss recognized by State and a basis in the land of $445,000 to Packard. No loss recognized by State and a basis in the land of $625,000 to Packard.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![4
Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard
received land with a fair market value of $445,000. Packard's basis in the State stock was $677,500. The land had a basis to State Company of
$625,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives?
Multiple Choice
$180,000 loss recognized by State and a basis in the land of $445,000 to Packard.
$180,000 loss recognized by State and a basis in the land of $625,000 to Packard.
No loss recognized by State and a basis in the land of $445,000 to Packard.
No loss recognized by State and a basis in the land of $625,000 to Packard.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41efa847-0d7d-44e5-a22d-30bc8b5861b3%2Fb44037e2-a40e-492f-a6dd-f654929b8657%2F80cm4z7_processed.png&w=3840&q=75)
Transcribed Image Text:4
Packard Corporation transferred its 100 percent interest to State Company as part of a complete liquidation of the company. In the exchange, Packard
received land with a fair market value of $445,000. Packard's basis in the State stock was $677,500. The land had a basis to State Company of
$625,000. What amount of loss does State recognize in the exchange and what is Packard's basis in the land it receives?
Multiple Choice
$180,000 loss recognized by State and a basis in the land of $445,000 to Packard.
$180,000 loss recognized by State and a basis in the land of $625,000 to Packard.
No loss recognized by State and a basis in the land of $445,000 to Packard.
No loss recognized by State and a basis in the land of $625,000 to Packard.
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