Carly owns 25% of base corporation’s single class of stock and premier corporation owns the remaining 75%. carly’s basis in the base stock is $200,000 and premier corporation’s basis in the base
stock is $600,000. carly receives property with a $175,000 adjusted basis and a
$250,000 fmv and premier corporation receives property with a $600,000 adjusted
basis and a $750,000 fmv in complete liquidation of base corporation. all of
base’s cash is used to pay its liabilities. which of following statements is
correct concerning the tax effects of the liquidation?
a) neither carly nor premier corporation will recognize a gain.
b) carly will recognize some gain but premier corporation will not recognize any gain.
c) both carly and premier will recognize some gain.
d) carly will not recognize any gain but premier will recognize some gain.
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 14:50, babyj93
Calvin works at a facility which processes apples. it costs the facility $0.68 to make either a jar of applesauce or a bottle of apple juice. due to the nature of the process and contractual agreements, calvin's facility must make and sell three jars of applesauce for every two bottles of apple juice. a jar of applesauce sells for $2.20, and a bottle of apple juice sells for $3.15. if the facility has annual overhead costs of $368,500, not including production costs, how many bottles of apple juice will the facility have sold when it breaks even every year? round to the nearest whole bottle, if necessary.
Answers: 3
Business, 21.06.2019 20:30, ROBIOX3551
Which of the following is an example of formal management controls? answers: a firm's culturethe willingness of employees to monitor each otherbudgeting and reporting activitiesmanagerial motivation
Answers: 3
Business, 22.06.2019 05:20, naomicervero
Social computing forces companies to deal with customers as opposed to
Answers: 2
You know the right answer?
Carly owns 25% of base corporation’s single class of stock and premier corporation owns the remainin...
Questions in other subjects:
History, 27.11.2019 21:31
Mathematics, 27.11.2019 21:31
History, 27.11.2019 21:31
