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Business, 19.03.2020 21:00 Calliedevore

Pursuant to a complete liquidation, Carrot Corporation distributes to its shareholders real estate held as an investment (basis of $1,325,200, fair market value of $1,722,760).

Determine the gain or loss recognized by Carrot on the distribution if the real estate is subject to a liability of $690,000. If the real estate is subject to a liability of $690,000, Carrot has a recognized gain of $ 190,000 .

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