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Ayanna Co. is owned 80% by Kendra and 20% by Barbara who is unrelated to...

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Accounting

Ayanna Co. is owned 80% by Kendra and 20% by Barbara who is unrelated to each other. Pursuant to a Complete liquidation, Ayanna Co. distributed land that had a FMV on the date of distribution of $100,000 and a basis to Ayanna Co. of 200,000. The land was acquired by Ayanna Co. in Section 351 transfer 2 years ago from Barbara when its FMV was 150,000. What is the recognized loss for Ayanna Co. if the land is distributed proportionately (pro-rata) to Kendra and Barbara 80% to Kendra and 20% to Barbara?

20,000

50,000

0

10,000

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