ABC Corporation (ABC Jowns 90N of the single class of stock in Subsidiary Corporation. The other 10% is owned by Rosie, an individual. ABC's basis in its Subsidiary stock is $ 200,000and Rosie's basis is Se0,000. Subsidiary distributes property A having an adjusted basis of $150,000 and an FMV of $720.000 to ABC, and property B with a FMV of $80,000 and anadjusted besis of S60,000 to Rosie in a liquidating distribution. Subsidary had $10 million of eamings and profts at the date of liquidetion.What basis do ABC and Rosie have in the property received in the liquidating distribuion ?OA ABC basis in property A $150,000 ; Ronie's basis in property B S80,000 in property BB. ABC's basis in property A $150,000; Rosie's basis in property B S00,000OC. ABC's basis in property A $720,000; Rosie's basis in property B S80,000OD. ABC basis in property A $200.000 Rosie's basis in property B S0,000

Given: The other 10% is owned by Rosie, an individual. ANC's basis in its subsidiary stock is…

AS150.000 ; Rosie's basis in property 8 S80,000 in property B ty AS150,000; Rosie's basis in property B S00,000 ty A$720,000: Rosie's basis in property B S0,000 A$200.000 Roie's basis in property B S0,000

AS150.000 ; Rosie's basis in property 8 S80,000 in property B ty AS150,000; Rosie's basis in property B S00,000 ty A$720,000: Rosie's basis in property B S0,000 A$200.000 Roie's basis in property B S0,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 15CE

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ABC Corporation ( ABC )owns 90% of the single class of stock in Subsidiary Corporation . The other 10% is owned by Rosie , an individual. ABC's basis in its Subsidiary stock is $ 200,000 and Rosie's basis is $90,000. Subsidiary distributes property A having an adjusted basis of $150,000 and an FMV of $720,000 to ABC , and property B with a FMV of $80,000 and an adjusted basis of $60,000 to Rosie in a liquidating distribution. Subsidiary had $10 million of earnings and profits at the date of liquidation. What basis do ABC and Rosie have in the property received in the liquidating distribution ? A. ABC basis in property A $200,000; Rosie's basis in property B $80,000 B. ABC's basis in property A $150,000; Rosie's basis in property B $90,000 C. ABC's basis in property A $720,000; Rosie's basis in property B $80,000 D. ABC basis in property A $150,000 ; Rosie's basis in property B $80,000 in…
8).
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Subject; acc
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