Casey Corporation Has Three Assets When It Decides to Liquidate

question 24

Multiple Choice

Casey Corporation has three assets when it decides to liquidate: $\begin{array}{lrrr}\text { Asset }&\text { Orig. Cost }&\text { Basis }&\text { Fair Market Value }\\\hline\text { Machine (Sec. 1231) } & \$ 140,000 & \$ 60,000 & \$ 110,000 \\\text { Building (Sec. 1231) } & \$ 900,000 & \$ 450,000 & \$ 380,000 \\\text { Stocks (Capital) } & \$ 50,000 & \$ 50,000 & \$ 30,000\end{array}$ The corporation sells the stock for its fair market value and distributes the other two assets to its sole shareholder. What is its tax liability on its final tax return if it had $45,000 of income from operations prior to liquidating?

• A) $6,750
• B) $5,000
• C) $3,750
• D) $750

Recognize effective leadership behaviors and the impact of status differences.

Understand the principles behind the behavioral model of leadership.

Differentiate between Theory X and Theory Y and their management approaches.

Appreciate the significance of key traits in successful leadership.

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Definitions:

Social Media

Digital platforms that enable users to create and share content or to participate in social networking.

Punished Behavior

Actions or responses that are decreased in frequency or likelihood due to the application of an adverse stimulus or punishment.

Causal Attribution

The process of evaluating the causes of behaviors and events, attributing them to internal or external factors.

Global Assumption

Broad, generalized beliefs that individuals hold about themselves, others, and the world, which shape their perceptions and behaviors.