Reference no: EM133266726

The stock in ACME Corporation is held equally by two sisters. One year before its liquidation, the shareholders transfer property (basis of $500,000, fair market value of $300,000) to ACME Corporation in return for stock. In current year liquidation, ACME Corporation transfers the property (now worth $250,000) pro rata to the sisters. What amount of loss will ACME Corporation recognize on the distribution?

Osborne, the parent corporation, has a basis of $540,000 in the stock of Widget Corporation, a subsidiary in which it owns 90% of all classes of stock. Osborne purchased the stock in Widget Corporation 10 years ago. In the current year, Osborne Corporation liquidates Widget Corporation and acquires assets worth $300,000 with a tax basis to Widget Corporation of $280,000. What basis will Osborne Corporation have in the assets acquired from Widget Corporation?

Pursuant to a complete liquidation, Widget Corporation distributes to its shareholders land with a basis of $350,000 and a fair market value of $450,000. The land is subject to a liability of $500,000. What is Widget's recognized gain or loss on the distribution?

The stock in Brighton Corporation is held by two unrelated individuals, Martha (60%) and Charles (40%). One year before the liquidation of Brighton, the shareholders transfer properties to the corporation in a transaction that qualifies under § 351. Included in that transfer was land (basis of $400,000, fair market value of $450,000). Pursuant to its liquidation in the current year, Brighton Corporation distributes the land (now worth $300,000) pro rata to the shareholders. What amount of loss will Brighton recognize on the distribution?