Topper Corporation Makes a Liquidating Distribution of Land to Its

question 112

Multiple Choice

Topper Corporation makes a liquidating distribution of land to its sole shareholder Tonya.Topper purchased the land several years ago for $150,000,and the land was recently appraised at $120,000 of value.Tonya purchased her stock three years ago for $65,000.What is the amount of gains or losses recognized by Topper Corporation and Tonya?

• A) \[\begin{array} { | l | l | }
• \hline \text { Topper Corporation } & \text { Tonya } \\
• \hline \text { \$0 recognized } & \text { \$0 recognized } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Topper Corporation } & \text { Tonya } \\
• \hline \$ 0 \text { recognized } & \$ 25,000 \text { gain recognized } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Topper Corporation } & \text { Tonya } \\
• \hline \$ 30,000 \text { loss recognized } & \$ 0 \text { recognized } \\
• \hline
• \end{array}\]
• D) \[\begin{array} {| l | l | }
• \hline \text { Topper Corporation } & \text { Tonya } \\
• \hline \$ 30,000 \text { loss recognized } & \$ 55,000 \text { gain recognized } \\
• \hline
• \end{array}\]

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Definitions:

Delegation

The act of assigning responsibility and authority to someone else to complete a task while maintaining accountability for the outcome.

Organizational Strategy

A long-term plan of action designed to achieve a particular goal or set of goals or objectives within an organization.

Project Objectives

Specific, measurable goals that are set to be achieved within a defined timeframe for a project.

Outcomes and Deliverables

The results, products, or achievements that are expected to be provided upon the completion of a project or process.