Star Corporation Makes a Liquidating Distribution of Land with a $90,000

question 8

Multiple Choice

Star Corporation makes a liquidating distribution of land with a $90,000 adjusted basis and a $100,000 FMV to shareholder Tim, who surrenders his Star stock to the corporation. Lindsey, another shareholder, received $100,000 cash for her shares. Tim's adjusted basis in the Star stock is $70,000. Lindsey's adjusted basis in her stock if $110,000. What is the amount of gains and or losses recognized by Tim and Lindsey as a result of these transactions?

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Definitions:

Positive Consequences

Outcomes that are viewed as beneficial or desirable following certain actions or behaviors, often used in the context of learning and behavior modification.

Negative Consequences

Undesirable or harmful outcomes resulting from specific actions or inactions.

Risky Sexual Behavior

Engaging in sexual activities that increase the risk of contracting sexually transmitted infections and unintended pregnancies.

Sexually Transmitted Infections

Sexually transmitted infections are infections that are primarily spread through sexual contact, including viruses and bacteria such as HIV, HPV, chlamydia, and gonorrhea.