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Micah is the sole shareholder of Trident Corporation. He formed the corporation ten years...

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Accounting

Micah is the sole shareholder of Trident Corporation. He formed the corporation ten
years ago when he transferred a building to the corporation in a section 351
exchange. In the current economy, Trident's business suffered and it had to
liquidate. In a liquidating distribution in the current year, Trident transfers the
building to Micah. At the time of the distribution, the building's FMV is $100,000
and the basis is $150,000. What is Trident's recognized loss on the transaction, if
any?
($50,000)
The loss is equal to the liability less the basis.
$0
($100,000)
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