Key Corporation Distributes a Patent with an Indeterminable Value to Gary

question 62

Multiple Choice

Key Corporation distributes a patent with an indeterminable value to Gary as part of a plan of complete liquidation. In addition, Gary receives $40,000 cash and land with a $70,000 FMV and a $30,000 adjusted basis. Gary's basis in the Key stock (a capital asset) surrendered is $120,000. If Gary relies on the open transaction doctrine, at the liquidation date he must recognize a

• A)$0 gain.
• B)$10,000 capital loss.
• C)$30,000 capital loss.
• D)$70,000 capital gain.

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Definitions:

Middle Childhood

A developmental stage that occurs between early childhood and adolescence, generally encompassing the ages of 7 to 11 years.

Early Childhood

The period of human development from birth to approximately 8 years old, characterized by rapid physical growth, cognitive development, and emotional and social learning.

Overweight Adolescents

Young individuals, typically aged 10-19, whose body mass index is above the normal range for their age and height, potentially leading to health issues.

Depressed

Experiencing persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, affecting one's daily functioning.