XYZ Corporation has a basis of $1,200,000 in the stock of ABC Corporation, a wholly owned subsidiary acquired several years ago. XYZ liquidates ABC Corporation and receives assets that are worth $1,000,000 and have a basis to ABC of $850,000. Determine XYZ Corporation’s recognized gain or loss on the liquidation. Determine XYZ Corporation’s basis in the assets received in liquidation.

XYZ Corporation has a basis of $1,200,000 in the stock of ABC Corporation, a wholly owned subsidiary acquired several years ago. XYZ liquidates ABC Corporation and receives assets that are worth $1,000,000 and have a basis to ABC of $850,000. Determine XYZ Corporation’s recognized gain or loss on the liquidation. Determine XYZ Corporation’s basis in the assets received in liquidation.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 63P

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