Barnett Corporation Owns an Office Building That Cost $900,000

question 24

Multiple Choice

Barnett Corporation owns an office building that cost $900,000. Barnett has taken $600,000 of depreciation on the building. The property is subject to a $600,000 mortgage. The office building has a current FMV of $400,000. Barnett Corporation is liquidated and the office building is distributed to a single individual shareholder who assumes the mortgage. Barnett Corporation must recognize

• A)no gain or loss.
• B)a $100,000 gain.
• C)a $300,000 gain.
• D)none of the above

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Definitions:

Paid Staff

Employees who receive compensation for their work in an organization, distinguishing them from volunteers who donate their time without pay.

Strategic Management

The ongoing planning, monitoring, analysis, and assessment needed to meet an organization's goals and objectives.

Strategy Implementation

The execution of plans and strategies to achieve goals and objectives, typically involving the use of resources and coordinating efforts among team members.

Strategic Planning

The process of defining a business's strategy or direction and making decisions on allocating its resources to pursue this strategy.