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Bruno, an individual, is the sole shareholder of Green Corporation. On January 1, 2018, Bruno...

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Accounting

Bruno, an individual, is the sole shareholder of Green Corporation. On January 1, 2018, Bruno decided to liquidate Green Corporation. At the date of liquidation, Green Corporation had assets with a FMV of $2,500,000 and a basis of $1,800,000. Green Corporations earnings and profits at the date of liquidation were $2,000,000. Brunos basis in Green Corporation stock is $900,000.

a) (3 points) What are the tax implications to Green Corporation?

b) (3 points) What are the tax implications to Bruno (Assume tax rate of 20%)

c) (3 points) How would your answer change if Bruno was a C-Corporation instead of an individual?

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