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Poppy owns 100% of Beta Corporation's stock. She purchased her stock ten years ago, and her current basis for the stock is $200,000. On June 10, Poppy decided to liquidate Beta Beta's balance sheet prior to the sale of the assets, payment of the liquidation expenses, and payment of federal income taxes, as well as some additional information is as follows: B (Click the icon to view the balance sheet.) (Click the icon to view the additional information.) Read the requirements. Requirement a. What are the tax consequences of the liquidation to Poppy and Beta Corporation? Assume a 21% corporate tax rate. Let's begin by determining the tax consequences for Beta. Start by computing Beta's recognized gain or loss on each of the assets distributed to Poppy (and in total) as a result of the liquidation. (Complete all input fields. Enter a "0" in the "Recognized gain (loss)" column, and enter "N/A" in the "Character of gain or loss" column if no gain or loss is recognized by Beta.) Recognized Assets Basis FMV gain (loss) Character of gain or loss Cash $ 200,000 $ 200,000 Marketable securities 110,000 105,000 Equipment 240,000 300,000 Land 340,000 670,000 Total $ 890,000 $ 1,275,000 - Requirements a. What are the tax consequences of the liquidation to Poppy and Beta Corporation? Assume a 21% corporate tax rate. b. How would your answer change if Poppy contributed the marketable securities six years ago? Choose from any list - Data Table Assets Basis FMV Cash Marketable securities Equipment $ 200,000 110,000 240,000 340,000 $ 200,000 105,000 300,000 670,000 Land $ 890,000 Total $ 1,275,000 Equity $ 1,275,000 Common stock Retained earnings (and E&P) 200,000 690,000 $ Total 890,000 $ 1,275,000 Print Done

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