Ball Corporation Owns 80% of Net Corporation's Stock and Jack $$\begin{array} { | l | l | } \hline \text { Ball } & \text { Jack } \\\hline \$ 0 & \$ 0 \\\hline\end{array}$$

question 82

Multiple Choice

Ball Corporation owns 80% of Net Corporation's stock and Jack owns the remaining 20% of Net Corporation's stock. Ball's basis in the Net stock is $200,000 and Jack's basis in the Net stock is $100,000. Under a plan of complete liquidation, Ball Corporation receives property with an adjusted basis of $400,000 and an FMV of $800,000 and Jack receives property with an adjusted basis of $50,000 and an FMV of $200,000. Ball and Jack's recognized gains on the liquidation are:

• A) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 0 & \$ 0 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 0 & \$ 100,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 200,000 & \$ 50,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 600,000 & \$ 100,000 \\
• \hline
• \end{array}\]

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Definitions:

Vision Impairments

A range of conditions that affect the ability to see, ranging from partial sight to blindness.

Dysphemism

The use of derogatory or unpleasant terms instead of neutral ones to convey a negative attitude towards the subject.

Goodwill

The intangible asset that represents the value of a business's reputation, brand, and customer relationships.

Connotative

Relating to the associated or secondary meaning of a word or expression, which evokes additional emotional or cultural significance beyond its literal definition.