Red blossom corporation transferred its 40 percent interest to tea company as part of a complete liquidation of the company. in the exchange, red blossom received land with a fair market value of $500,000. the corporation's basis in the tea company stock was $300,000. the land had a basis for tea company of $600,000. what amount of gain does red blossom recognize in the exchange and what is its basis in the land it receives?

$200,000 and $500,000      

Explanation:

The computations are shown below:

For gain recognized:

= Fair market value of the received land - corporation basis

= $500,000 - $300,000

= $200,000

For land basis received by Red Blossom corporation:

= $500,000

It records only the fair market value of the land, not the land basis for tea Company so only $500,000 would be considered

where is the graph?

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: