What basis will (parent) wren corporation have in market

Assignment Help Financial Accounting

Reference no: EM13140601

At the time of its liquidation under § 332 Subsidiary Cardinal Corporation (E&P of 420k) had the following assets and liabilities: cash 175k; marketable securities with FMV of 310k and basis 150k; unimproved land with a FMV 510k and basis 400k; an unsecured note payable 50k and a mortgage on the unimproved land of 350k. Cardinal also had a general business credit carryover of 25k. Parent Wren Corporation acquired all the stock of Cardinal seven years ago for 390k.

What basis will (parent) Wren Corporation have in the marketable securities and unimproved land it receives on the liquidation?

(Parent) Wren Corporation has a § 334(b)(1) carryover basis of $k? for marketable securities and $ k? for the unimproved land Fact: (parent) Wren’s basis in the (subsidiary) Cardinal stock disappears.

Reference no: EM13140601

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