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Problem 6-54 (LO. 4) Pursuant to a complete liquidation, Oriole Corporation distributes to its shareholders land held for three years as an investment (adjusted basis of $250,000, fair market value of $490,000). The land is subject to a liability of $520,000. a. Oriole Corporation would recognize of $ on the distribution. b. If the land is, instead, subject to a liability of $400,000, Oriole Corporation has a recognized of $ on the distribution.

Problem 6-54 (LO. 4) Pursuant to a complete liquidation, Oriole Corporation distributes to its shareholders land held for three years as an investment (adjusted basis of $250,000, fair market value of $490,000). The land is subject to a liability of $520,000. a. Oriole Corporation would recognize of $ on the distribution. b. If the land is, instead, subject to a liability of $400,000, Oriole Corporation has a recognized of $ on the distribution.

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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Problem 6-54 (LO. 4) Pursuant to a complete liquidation, Oriole Corporation distributes to its shareholders land held for three years as an investment (adjusted basis of $250,000, fair market value of $490,000). The land is subject to a liability of $520,000. a. Oriole Corporation would recognize of $ on the distribution. b. If the land is, instead, subject to a liability of $400,000, Oriole Corporation has a recognized of $ on the distribution.
Transcribed Image Text:Problem 6-54 (LO. 4) Pursuant to a complete liquidation, Oriole Corporation distributes to its shareholders land held for three years as an investment (adjusted basis of $250,000, fair market value of $490,000). The land is subject to a liability of $520,000. a. Oriole Corporation would recognize of $ on the distribution. b. If the land is, instead, subject to a liability of $400,000, Oriole Corporation has a recognized of $ on the distribution.
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To determine:

Gain (loss) on distribution of land.

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