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Business, 22.04.2020 22:44 charliiboddie29
Ball Corporation owns 80% of Net Corporation’s stock and Jack owns the remaining 20% of Net Corporation’s stock. Ball’s basis in the Net stock is $200,000 and Jack’s basis in the Net stock is $100,000. Under a plan of complete liquidation, Ball Corporation receives property with an adjusted basis of $400,000 and a FMV of $800,000 and Jack receives property with an adjusted basis of $50,000 and a FMV of $200,000. Ball and Jack’s recognized gains on the liquidation are:
Ball Jack
A) $0 $0
B) $0 $100,000
C) $200,000 $50,000
D) $600,000 $100,000
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Answers: 3
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Ball Corporation owns 80% of Net Corporation’s stock and Jack owns the remaining 20% of Net Corporat...
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