Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. robin transferred her 60 percent interest to cardi

Robin transferred her 60 percent interest to Cardinal Company as part of a complete liquidation...

50.1K

Verified Solution

Question

Accounting

image

Robin transferred her 60 percent interest to Cardinal Company as part of a complete liquidation of the company. In the exchange, she received land with a fair market value of $800,000. Robin's basis in the Cardinal stock was $900,000. The land had a basis to Cardinal Company of $1,000,000. What amount of loss does Cardinal recognize in the exchange and what is Robin's basis in the land she receives? The distribution was non pro rata to Robin, a related person. $200,000 loss recognized by Cardinal and a basis in the land of $1,000,000 to Robin $200,000 loss recognized by Cardinal and a basis in the land of$800,000 to Robin No loss recognized by Cardinal and a basis in the land off $1,000,000 to Robin No loss recognized by Cardinal and a basis in the land of $800,000 to Robin

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students