Fernando Was a One-Third Shareholder in Rodriguez, Inc

question 28

Multiple Choice

Fernando was a one-third shareholder in Rodriguez, Inc.prior to its liquidation in March.Fernando's basis in his Rodriguez stock was $50,000.In March, Rodriguez distributed property worth $125,000 (basis $80,000) in complete liquidation of Fernando's Rodriguez shares.Fernando took the property subject to a $30,000 liability.How much taxable gain must Fernando recognize upon receipt of the property from Rodriguez?

• A)Zero
• B)$45,000
• C)$75,000
• D)$30,000

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Definitions:

Normal Model

A statistical representation where most occurrences happen around the central peak and probabilities for values decrease as they move away from the mean.

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, indicating how spread out the numbers are from the mean.

Normal Model

A statistical model that describes how data points are distributed around the mean, assuming a symmetrical bell-shaped curve known as the normal distribution.

Scores Between

A reference to evaluating or comparing numerical values or results within a specified range.