Texas Corporation Is Undergoing a Complete Liquidation and Distributes Land

question 11

Multiple Choice

Texas Corporation is undergoing a complete liquidation and distributes land to Robert, one of its shareholders, in exchange for all of Robert's stock. The land has a basis of $300,000 and an FMV of $400,000 on Texas Corporation's books and is subject to a $325,000 liability. Robert assumes the liability on the property. Robert's basis in his Texas Corporation stock is $100,000. What is the amount of gain or loss recognized by Robert on the distribution?

• A)$175,000 gain
• B)$25,000 gain
• C)$25,000 loss
• D)No gain or loss is recognized.

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Definitions:

Job Security

The likelihood of an individual keeping their job without the risk of becoming unemployed.

Independent Contractors

Individuals or entities contracted to perform work for another entity as a non-employee, responsible for their own taxes and benefits.

Self-employed Individuals

Persons who operate their own business or work for themselves, rather than being employed by a company or another individual.

Temporary Agency

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