Parent Corporation Owns All of Subsidiary Corporation's Stock

question 65

Multiple Choice

Parent Corporation owns all of Subsidiary Corporation's stock. In addition, Parent Corporation owns $100,000 (face amount and basis) of Subsidiary Corporation's bonds. When Subsidiary Corporation is completely liquidated, it distributes property with a $70,000 adjusted basis and a $100,000 FMV to Parent Corporation in redemption of the Subsidiary Corporation bonds. Following the liquidation, Parent Corporation will have a basis in the Subsidiary Corporation property received for the bonds of

• A)$0.
• B)$70,000.
• C)$100,000.
• D)none of the above

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Definitions:

Information Processing

The method by which humans or computers take in information, interpret it, and then respond to it.

Sustainability

An organization's ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community.

Eco-friendly Vision

A strategic outlook or plan that emphasizes sustainability and minimal environmental impact.

Sustainably Sourced

Referring to goods or materials obtained through methods that do not deplete the resources used or harm the environment, often supporting long-term ecological balance.