Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder, Mark Ingram. The fair market value of the parcel is $58,500, and its tax basis is $36,000. Mark's basis in his stock is $29,500. d. Assume the fair market value of the land is $25,000 rather than $58,500. How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land? Land Basis
Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder, Mark Ingram. The fair market value of the parcel is $58,500, and its tax basis is $36,000. Mark's basis in his stock is $29,500. d. Assume the fair market value of the land is $25,000 rather than $58,500. How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land? Land Basis
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder, Mark Ingram. The fair market value of the parcel is $58,500, and its tax basis is $36,000. Mark's basis in his stock is $29,500.
d. Assume the fair market value of the land is $25,000 rather than $58,500. How much gain must Mark recognize (if any) as a result of the distribution, and what is his basis in the land?
| Land Basis |
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