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  1. business
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  3. cowboy corporation owns \(80\%\) of the single cla

Cowboy Corporation owns \(80\%\) of the single class of stock in Doggie Corporation. The other...

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Accounting

Cowboy Corporation owns \(80\%\) of the single class of stock in Doggie Corporation. The other \(20\%\) is owned by Miguel, an individual. Cowboy's basis in its Doggie Corporation stock is \$400,000 and Miguel's basis is \$100,000. Doggie Corporation distributed Asset A (basis of \(\$ 600,000\), fair market value of \(\$ 900,000\)) to to Cowboy Corporation, and Asset B (basis of \(\$ 250,000\), fair market value of \(\$ 225,000\)) to Miguel as a liquidating distribution.
a) Compute Doggie's recognized gain or loss on the distribution of property to Cowboy.
b) Compute Doggie's recognized gain or loss on the distribution of cash to Miguel.
c) Compute Cowboy's recognized gain or loss and basis in Asset A.
d) Compute Miguel's recognized gain or loss and basis in Asset B.
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