Ball Corporation Owns 80% of Net Corporation's Stock and Jack $$\begin{array} { | l | l | } \hline\text { Ball } & \text { Jack } \\\hline \$ 800,000 & \$ 200,000 \\\hline\end{array}$$

question 38

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 bases in the property received are:

• A) \[\begin{array} { | l | l | }
• \hline\text { Ball } & \text { Jack } \\
• \hline \$ 800,000 & \$ 200,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline\text { Ball } & \text { Jack } \\
• \hline \$ 400,000 & \$ 200,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline\text { Ball } & \text { Jack } \\
• \hline \$ 400,000 & \$ 50,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Ball } & \text { Jack } \\
• \hline \$ 200,000 & \$ 100,000 \\
• \hline
• \end{array}\]

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Definitions:

Confirmation

The action of verifying or validating something to prove its accuracy or authenticity.

Knowledge

Information, understanding, or skill that one gains through education or experience, enabling them to perform tasks, make decisions, or understand subjects.

Psychological Processes

Internal processes that involve thoughts, feelings, and motivations that influence behavior.

Letting Go

The process of releasing emotional attachments or relinquishing control over situations or individuals, often considered a necessary step in healing and personal growth.