A wholy-owned subsidiary of a corporation is liquidated. The corporation has abasis of $300,000 in the stock of the subsidiary The corporation acquires assetsthat have a fair market value (FMV) of $250,000 and an adjusted basis of $150,000What is this corporation's realized and recognized gain on the liquidation?$100,000 realized gain and S0 recognized gain$150,000 realized gain and $0 recognized gain$100,000 realized gain and $50 000 recognized gain$50,000 roalized gain and $100 000 recognized gain

Recognized gain: Recognized gains are represented inside the distinction between the preliminary…

A wholly-owned subsidiary of a corporation is liquidated. The corporation has a basis of $300,000 in the stock of the subsidiary The corporation acquires asse that have a fair market value (FMV) of $250,000 and an adjusted basis of $150 What is this corporation's realized and recognized gain on the liquidation?

A wholly-owned subsidiary of a corporation is liquidated. The corporation has a basis of $300,000 in the stock of the subsidiary The corporation acquires asse that have a fair market value (FMV) of $250,000 and an adjusted basis of $150 What is this corporation's realized and recognized gain on the liquidation?

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

A wholy-owned subsidiary of a corporation is liquidated. The corporation has a
basis of $300,000 in the stock of the subsidiary The corporation acquires assets
that have a fair market value (FMV) of $250,000 and an adjusted basis of $150,000
What is this corporation's realized and recognized gain on the liquidation?
$100,000 realized gain and S0 recognized gain
$150,000 realized gain and $0 recognized gain
$100,000 realized gain and $50 000 recognized gain
$50,000 roalized gain and $100 000 recognized gain

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