Question 25B's basis in the property received ism $10,000m $20,000m $30,000m None of these_ Question 26Z Co.'s recognized gain or loss on the distribution to A ism None of these_m S35.000 capital gainm $<40,000> ordinary lossm 0 Question 27Z Co.'s recognized gain or loss On the distribution to B ism None of these_m $2O,0OO capital gainm $10,000 capital gainm 0 Question 28Z Co.'s recognized gain or loss on the distribution to C is $70,000 capital gainNone of these_$20,000 capital gain$40,000 gainQuestion 29Z Co.'s recognized gain or loss on the distribution to D ism <$1,600> capital lossm 0m <$400> capital lossm None of these Z Co. adopts a plan of complete liquidation and makes the following pro ratadistributions to its shareholders (assume all are individuals and each has a $2,000basis in the Z Co. stock):A Cash$40,000CapitalBAssetFMV$30,000BASIS$10,000MORTGAGE $20,000CapitalFMV$50,000AssetBASIS$10,000MORTGAGE $80,000CapitalFMV$1,400AssetBASIS$3,000(Assume that Z Co. acquired the property distributedto Din a Code 5 351 transfer 6 months beforeadopting a plan of liquidation when the FMV of theproperty was $1,800 and Z Co's basis was $3,000)E Inventory FMV$50,000BASIS$20,000

Partnership liquidation:Partnership realization and liquidation refer to the process of winding up…

Answered: Question 25 B's basis in the property…

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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Question 25 B's basis in *the* property received is m $10,000 m $20,000 m $30,000 m None of these_
Question 26 Z Co.'s recognized gain or loss on the distribution to A is m None of these_ m S35.000 capital gain m $<40,000> ordinary loss m 0
Question 27 Z Co.'s recognized gain or loss On the distribution to B is m None of these_ m $2O,0OO capital gain m $10,000 capital gain m 0

Question 28

Z Co.'s recognized gain or loss on the distribution to C is

$70,000 capital gain

None of these_

$20,000 capital gain

$40,000 gain

Question 29

Z Co.'s recognized gain or loss on the distribution to D is

m <$1,600> capital loss

m ⁰

m <$400> capital loss

m None of these

Z Co. adopts a plan of complete liquidation and makes the following pro rata
distributions to its shareholders (assume all are individuals and each has a $2,000
basis in the Z Co. stock):
A Cash
$40,000
Capital
B
Asset
FMV
$30,000
BASIS
$10,000
MORTGAGE $20,000
Capital
FMV
$50,000
Asset
BASIS
$10,000
MORTGAGE $80,000
Capital
FMV
$1,400
Asset
BASIS
$3,000
(Assume that Z Co. acquired the property distributed
to Din a Code 5 351 transfer 6 months before
adopting a plan of liquidation when the FMV of the
property was $1,800 and Z Co's basis was $3,000)
E Inventory FMV
$50,000
BASIS
$20,000

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