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12.03.2021 •
Business
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In the exchange, Red Blossom received land with a fair market value of $555,000. The corporation's basis in the Tea Company stock was $422,500. The land had a basis to Tea Company of $815,000. What amount of gain does Red Blossom recognize in the exchange and what is its basis in the land it receives
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Ответ:
$132,500 gain recognized and a basis in the land of $555,500.
Explanation:
The given values are:
Fair market value,
= $555,000
Corporation's basis in the company stock,
= $422,500
Land basis,
= $815,000
Now,
The recognized gain will be:
=![Fair \ market \ value-Corporation's \ basis](/tpl/images/1191/0078/20a16.png)
On substituting the given values, we get
=![555,000-422,500](/tpl/images/1191/0078/e1b02.png)
=
($)
Basis in land will be equal to fair market value i.e., $555,000.
Thus the above is the correct solution.
Ответ:
what?
Explanation:
pls give us more words