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Question content area top Part 1 Vicki, who is single, transfers property...

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Accounting

Question content area top
Part 1
Vicki, who is single, transfers property with an $ 85 comma 000 basis and a $ 128 comma 000 fair market value(FMV) to Tasty World Corporation in exchange for all 50 shares of Tasty World stock. The shares qualify as Sec. 1244 stock. Two years later, Vicki sells the stock for $ 28 comma 000.
Read the requirements.LOADING...
Question content area bottom
Part 1
Requirement a. What are the amount and character of Vicki's recognized gain or loss?
Vicki's
loss
is
$57,000
, of which
$50,000
is
ordinary under Sec. 1244 and any remaining loss is a long term capital loss.
Part 2
Requirement b. How would your answer to Part a change if the FMV of the property were $ 74 comma 000?
Vicki's
loss
is
$57,000
, of which
$46,000
is
ordinary under Sec. 1244 and any remaining loss is a long term capital loss.

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