Charla Corporation is owned eighty percent (80%) by Jeanette and twenty percent (20%) by Victoria who are unrelated to each other. At the time of a Complete Liquidation, Charla Corporation owned Land that had a Fair Market Value of $100,000 and a basis to Charla Corporation of $400,000. The Land was acquired by Charla Corporation in a Section 351 Transfer two (2) years ago from Victoria when its Fair Market Value was $200,000. (Assume that there was no business purpose for the transfer). Pursuant to the Complete Liquidation, the Land is sold to an unrelated third party for $100,000 and the $100,000 proceeds of the sale are distributed proportionately (pro-rata) to Jeanette and Victoria (ie. eighty percent (80%) to Jeanette and twenty percent (20%) to Victoria). The Recognized Loss to Charla Corporation is: A. $500.00 B. $300.00 C $200.00 D. SO

Charla Corporation is owned eighty percent (80%) by Jeanette and twenty percent (20%) by Victoria who are unrelated to each other. At the time of a Complete Liquidation, Charla Corporation owned Land that had a Fair Market Value of $100,000 and a basis to Charla Corporation of $400,000. The Land was acquired by Charla Corporation in a Section 351 Transfer two (2) years ago from Victoria when its Fair Market Value was $200,000. (Assume that there was no business purpose for the transfer). Pursuant to the Complete Liquidation, the Land is sold to an unrelated third party for $100,000 and the $100,000 proceeds of the sale are distributed proportionately (pro-rata) to Jeanette and Victoria (ie. eighty percent (80%) to Jeanette and twenty percent (20%) to Victoria). The Recognized Loss to Charla Corporation is: A. $500.00 B. $300.00 C $200.00 D. SO

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 29P

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