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Required information [The following information applies to the questions displayed below.) Shauna and Danielle decided...

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Accounting

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Required information [The following information applies to the questions displayed below.) Shauna and Danielle decided to liquidate their jointly owned C corporation, Woodward Fashions Inc. (WFI). After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet: Cash Building Land Total FMV $ 140,000 28,800 112,000 $ 280, eee Adjusted Basis $140,000 14, eee 56,eee $210,000 Appreciation 14,000 56,000 $70,000 Under the terms of the agreement, Shauna will receive the $140,000 cash in exchange for her 50 percent interest in WFI Shauna's tax basis in her WFI stock is $35.000. Danielle will receive the building and land in exchange for her 50 percent interest in WFl. Danielle's tax basis in her WFI stock is $70,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Negative amounts should be indicated by a minus sign.) b. What amount of gain or loss does Shauna recognize in the complete liquidation? Gain or loss recognized

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