Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. xyz corporation had one shareholder. pursuant to a

XYZ Corporation had one shareholder. Pursuant to a plan of liquidation, XYZ Corporation distributed land...

50.1K

Verified Solution

Question

Accounting

XYZ Corporation had one shareholder. Pursuant to a plan of liquidation, XYZ Corporation distributed land to its sole shareholder, Jane, as a liquidating distribution. At the time of the distribution, the land had a fair market value of $120,000 and XYZ Corporations adjusted basis in the land was $100,000. The land was encumbered by a $140,000 mortgage, and the mortgage was assumed by the shareholder. How much gain did XYZ Corporation recognize as a result of the distribution?

a. 0.

b. $20,000.

c. $40,000.

d. $100,000.

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

Basic Math
1.2K views

find out how set H equals {p(t) element of P2 | p(1) equals 0} can be...

Medical Sciences
1.2K views

What 3 types of cells are found in lymph nodes?

Advance Math
1.2K views

Hello, In your own words, please if you were to teach geometry such as triangles and quadrilaterals,...

Physics
1.2K views

2 5 of 90 Two cars are travelling in the same direction with a velocity...

Geometry
1.2K views

Description Common Shares Contibuted Surplus Recained Eamnings Cash Debit Earnings Per Share Revenue Debt to...

Basic Math
1.2K views

A cooler contains 100 ice cream bars. There are 30 Vanilla bars, 20 Mint Chocolate...

Accounting
1.2K views

Required information (The...

Accounting
1.2K views

Calculate the current ratio and the debt ratio for 2011, 2012, and 2013. How is...

Accounting
1.2K views

Hagley reported the following pures from a usted trial balance for its first year of...

Accounting
1.2K views

TB MC Qu. 17-97 (Algo) Kay Company budgets overhead... requiring 5 direct labor hours? Multiple...

Accounting
1.2K views

Does it matter if the salaries of the sales department are charged to factory overhead,...

Finance
1.2K views

The internal rate of return: Is also...