Title: Prime Corporation liquidates its 85%-owned subsidiary Bass Corporation under the provisions of Secs. ... Post by: safezone on Feb 14, 2017 Prime Corporation liquidates its 85%-owned subsidiary Bass Corporation under the provisions of Secs. 332 and 337. Bass Corporation distributes land to its minority shareholder, John, who owns a 15% interest. The property received by John has a $55,000 FMV. The land was used in the Bass Corporation's business and has a $65,000 adjusted basis and is subject to a $10,000 liability, which is assumed by John. John's basis in his stock is $25,000. What gain or loss will John and Bass Corporation recognize on the distribution of the land?
A) John Bass $20,000 gain $-0- B) John Bass $20,000 gain $10,000 loss C) John Bass $30,000 gain $-0- D) John Bass $30,000 gain $10,000 loss Title: Re: Prime Corporation liquidates its 85%-owned subsidiary Bass Corporation under the provisions of ... Post by: strwbrry on Feb 14, 2017 Content hidden
|