During 2017, Track Corporation Distributes Property to Cindy as Part

question 64

Multiple Choice

During 2017, Track Corporation distributes property to Cindy as part of a complete liquidation. Property included in the distribution is $30,000 in cash, land with a $40,000 adjusted basis and a $60,000 FMV, and a copyright without an ascertainable FMV and having a zero basis. The first payment to Cindy of $8,000 for use of the copyrighted property occurs in 2018. Cindy has a basis in the Track stock of $95,000 immediately preceding the liquidation. The minimum amount of gain that Cindy must recognize is a

• A)$3,000 gain in 2018.
• B)$0 gain in 2017.
• C)$3,000 gain in 2017, which is reported on an amended current-year tax return that is filed in 2018.
• D)none of the above

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Definitions:

Topographic Model

A framework in Freudian psychoanalysis that divides the mind into the conscious, preconscious, and unconscious levels of awareness.

Preconscious

The part of the mind containing information that is not currently in conscious awareness but can be easily brought to consciousness.

Vienna Psychoanalytic Society

An organization founded by Sigmund Freud in 1902, dedicated to the study and promotion of psychoanalysis.

Neurologist

A medical specialist who diagnoses and treats disorders of the nervous system, including diseases of the brain, spinal cord, nerves, and muscles.