Under a Plan of Complete Liquidation, Key Corporation Distributes Land

question 44

Multiple Choice

Under a plan of complete liquidation, Key Corporation distributes land (not a disqualified property) with an adjusted basis of $410,000 and an FMV of $300,000 for all Sharon's stock. Sharon's basis in her 5% interest in the Key stock is $250,000. Find Sharon's basis in the land and Key Corporation's recognized gain or loss.

---

Definitions:

Ecological Opportunities

Situations where organisms can exploit new resources or niches, often leading to adaptive evolution or speciation.

Ancestral Organism

The original form from which a species or group of species evolved.

Macroevolution

Large-scale evolutionary changes that occur over geologic time, leading to the emergence of new species and broader taxonomic groups.

Microevolution

Change in the genetic makeup of a species or a small group of organisms over a brief time period, regarded as evolutionary.