What Is Alexander's Net Gain or Loss on the Liquidation

question 63

Multiple Choice

What is Alexander's net gain or loss on the liquidation of his 100 percent interest in an S corporation if the corporation distributes the following three assets to him in exchange for his stock: Prior to any distributions,Alexander's basis in his S corporation interest was $160,000.

• A)($12,000)
• B)($22,000)
• C)$10,000
• D)$22,000

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Definitions:

Jung

Carl Jung was a Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the role of the collective unconscious, archetypes, and individuation in human psychological development.

Decisions

The act or process of making choices or judgments after considering alternative actions, outcomes, or strategies.

Sensing

The process of receiving information through the senses.

Jung

Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology and explored concepts such as the collective unconscious and archetypes.