Ball Corporation Owns 80% of Net Corporation's Stock and Jack

question 60

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:

---

Definitions:

Bill of Rights

The Bill of Rights constitutes the first ten amendments to the United States Constitution, guaranteeing fundamental civil liberties and protections to individuals.

Federal Government

The national government of a federal country, which holds the authority to govern the entire country and is composed of separate divisions including legislative, executive, and judicial branches.

Commercial Enterprise

An organization or venture primarily engaged in commercial, industrial, or professional activities.

U.S. Constitution

The foundational legal document of the United States, outlining the structure of the government, the rights of its citizens, and the federal laws.