A liquidating corporation could either (1) sell its assets and then distribute remaining cash to its shareholders or (2) distribute its assets directly to the shareholders who then sell the distributed assets. Do the tax consequences of these alternatives differ?
A liquidating corporation could either (1) sell its assets and then distribute remaining cash to its shareholders or (2) distribute its assets directly to the shareholders who then sell the distributed assets. Do the tax consequences of these alternatives differ?
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 7DQ
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A liquidating corporation could either (1) sell its assets and then distribute remaining cash to its shareholders or (2) distribute its assets directly to the shareholders who then sell the distributed assets. Do the tax consequences of these alternatives differ?
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