True or False 1. John owns 90% of X Corp. and his friend Bob...
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True or False 1. John owns 90% of X Corp. and his friend Bob owns 10% of X Corp. X liquidates, pursuant to a plan of liquidation. John will inherit 90% of X' E& P. 2. X Corporation redeemed 10 shares of X stock from individual shareholder A in exchange for $ 5000, in a transaction that qualified as a qualified redemption. A's adjusted basis in the 10 shares is $3000 ($300 per share). X' had $1000 of E& P. A will recognize $1000 of capital gain and a $1000 dividend. 3. X Corp distributes property fair market value (FMV) $100, adjusted basic $50 subject to a liability of $110. X will recognize $60 gain as a result of the transaction.
1. John owns 90% of X Corp. and his friend Bob owns 10% of X Corp. X liquidates, pursuant to a plan of liquidation. John will inherit 90% of X' E& P.
2. X Corporation redeemed 10 shares of X stock from individual shareholder A in exchange for $ 5000, in a transaction that qualified as a qualified redemption. A's adjusted basis in the 10 shares is $3000 ($300 per share). X' had $1000 of E& P. A will recognize $1000 of capital gain and a $1000 dividend.
3. X Corp distributes property fair market value (FMV) $100, adjusted basic $50 subject to a liability of $110. X will recognize $60 gain as a result of the transaction.
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