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Augustus1 Augustus1
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7 years ago
Sun Corporation makes a liquidating distribution of land with a $90,000 adjusted basis and a $100,000 FMV to shareholder Tim, who surrenders his Sun stock to the corporation. Lindsey, another shareholder, received $100,000 cash for her shares. Tim's adjusted basis in the Sun stock is $70,000. Lindsey's adjusted basis in her stock if $110,000. What is the amount of gains and or losses recognized by Tim and Lindsey as a result of these transactions?
A) Tim   Lindsey
$30,000 gain realized, $0 recognized;   $0 realized loss; $10,000 recognized loss
B) Tim   Lindsey
$30,000 gain realized & recognized;   $0 realized loss; $10,000 recognized loss
C) Tim   Lindsey
$30,000 gain realized, $0 recognized;   $10,000 loss realized and recognized
D) Tim   Lindsey
$30,000 gain realized & recognized;   $10,000 loss realized and recognized
Textbook 
Prentice Hall's Federal Taxation: 2011: Individuals

Prentice Hall's Federal Taxation: 2011: Individuals


Edition: 14th
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We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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Yoko900Yoko900
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Augustus1 Author
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#2
7 years ago
I needed this so bad, I'm laughing right now from happiness
We do not judge the people we love.

Prentice Hall's Federal Taxation by Kramer
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