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Question 2. Melinda is the sole shareholder of Nadler Corporation. The basis of the total...

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Accounting

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Question 2. Melinda is the sole shareholder of Nadler Corporation. The basis of the total assets owned by Nadler is $100,000. The fair market value of these assets is $175,000. Melinda has a basis in her stock of $125,000. Nadler has Accumulated E&P of $50,000. Melinda exchanges all of her shares for all of Nadler's assets, in a complete liquidation of Nadler. 1. What is the amount and nature of gain recognized by Melinda? a $50,000 dividend income, $125,000 return of capital. b. $25,000 capital loss c. $50,000 capital gain d. $50,000 dividend income 2. What is the basis of the assets received by Melinda? a. $50,000 b. $100,000 c. $125,000 d. $175,000

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