Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the stock in black corporation is owned by sam and

The stock in Black Corporation is owned by Sam and Susan, who are unrelated. Sam owns...

70.2K

Verified Solution

Question

Accounting

The stock in Black Corporation is owned by Sam and Susan, whoare unrelated. Sam owns 70% and Susan owns 30% of the stock inBlack Corporation. The following assets are to be distributed incomplete liquidation of Black Corporation: Adjusted Fair MarketBasis Value Cash $100,000 $100,000 Inventory 120,000 140,000Equipment 220,000 180,000 Land 150,000 180,000

a. What gain or loss would Black Corporation recognize if itdistributes the cash, inventory, and equipment to Sam and the landto Susan?

b. What gain or loss would Black Corporation recognize if itdistributes the cash, inventory, and land to Sam and the equipmentto Susan?

Answer & Explanation Solved by verified expert
4.5 Ratings (663 Votes)
Part A With respect to the distributions to Sam Black Corporation will recognize a gain of 20000 on the distribution of the inventory but not the loss of 40000 on the distribution of    See Answer
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

Physics
1.2K views

make technology papers related to scattering

Physics
1.2K views

A 7450 kg rocket blasts off vertically from the launch pad with a constant upward acceleration...

Economics
1.2K views

Over the last 10 years, in Canada and the United States, corporate bond yields have fallen...

Physics
1.2K views

9. How do we know whether or not global warming is caused by humans? From experiments in...

Accounting
1.2K views

Required information The Foundational 15 [LO2-1, LO2-2, LO2-3, LO2-4] [The following information applies to the questions displayed below.] Sweeten...

Biology
1.2K views

What will happen if red blood cells are transferred to seawater which has a very...

Algebra
1.2K views

Choose the correct answer below Write the expression in terms of sine and cosine and...

Accounting
1.2K views

confused please help! can you please show work Assume...

Accounting
1.2K views

Please complete, thank you! Class, Riley Natural Fertilizer, Inc. issued $780,000 of 8% face...

Accounting
1.2K views

ABC Company's actual unit sales in the current year for January, February, and March were...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Doyle Company issued $500,000...

Accounting
1.2K views

Kenmore Fabrication estimated that direct labor cost for the year would be $642,400. The company...