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:

Secondary Traits

Personality characteristics that are less consistent and not as deeply ingrained as primary traits, often influenced by specific contexts.

Traits

Characteristic patterns of thought, emotion, and behavior that are relatively stable over time.

Gordon Allport

A psychologist known for his theory of personality traits and the study of the individual.

Cognitive Modeling

The process of creating a computational model to simulate human thought processes, often used in artificial intelligence and psychology to study cognition.