Ball Corporation Owns 80% of Net Corporation's Stock and Jack $$\begin{array} { | l | l | } \hline \text { Ball } & \text { Jack } \\\hline \$ 0 & \$ 0 \\\hline\end{array}$$

question 62

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:

• A) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 0 & \$ 0 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 0 & \$ 100,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 200,000 & \$ 50,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 600,000 & \$ 100,000 \\
• \hline
• \end{array}\]

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Definitions:

Make-table Query

A type of query in database systems that creates a new table and populates it with data selected from one or more other tables.

Archive Table

A database table used for storing historical records or data that is not actively used but needs to be preserved.

Validation Rules

Criteria established in databases or software applications to ensure that the data entered adheres to specific formats or values.

One-to-many Relationship

A type of database relationship where a single record in one table can be associated with multiple records in another table.