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QUESTION 11(CHAPTER 20) Pittsburgh Corporation has three shareholders: Jim, Connor, and Nick. Jim, Connor...

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Accounting

QUESTION 11(CHAPTER 20)
Pittsburgh Corporation has three shareholders: Jim, Connor, and Nick. Jim, Connor and Nick are not
related to each other. Jim owns 65% of Pittsburgh Corporation, Connor owns 20% and Nick owns
15%. Pittsburgh Corporation distributes an apartment building (FMV $4,200,000, AB $5,020,000) in
liquidation. The building was originally contributed by Jim one year ago in a $351 when the FMV was
$6,000,000 and the AB was $5,700,000.
(a) How much loss will the corporation recognize if it distributes the building 65% to Jim, 20% to
Connor and 15% to Nick?
(b) How much loss will the corporation recognize if it distributes the building to Nick alone?
(c) How much loss will the corporation recognize if it distributes the building to Jim alone?
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