Reference no: EM131000086
X Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals):
A Cash: $70,000;
B Inventory: FMV-$20,000 Basis-$20,000 Mortgage-$10,000;
C Inventory: FMV-$30,000 Basis-$15,000 Mortgage-$40,000;
D Capital Asset: FMV-$500 Basis-$2,800;
(Assume that X Co. acquired the property distributed to D in a Sec. 351 transfer 6 months before adopting the plan of liquidation when the FMV of the property was $800 and X Co.'s basis was $2,800).
E Capital Asset: FMV-$10,000 Basis-$4,000.
Each shareholder had a $1,000 basis in the X Co. stock.
X Co.'s recognized gain or loss on the distribution to:
A is ?
B is?
C is ?
D is ?
E is ?
The Gain or Loss recognized by:
A is ?
B is?
C is ?
D is ?
E is ?
C's basis in the property received is ?
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