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

question 65

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:

Suicidal Ideation

The act of thinking about, considering, or planning suicide.

Depressed Mood

A state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being.

Anhedonia

The inability to feel pleasure in normally pleasurable activities.

Anergia

A lack of energy or initiative, often seen as a symptom in various psychiatric and physical disorders.