Key Corporation Distributes a Patent with an Indeterminable Value to Gary

question 69

Multiple Choice

Key Corporation distributes a patent with an indeterminable value to Gary as part of a plan of complete liquidation. In addition, Gary receives $40,000 cash and land with a $70,000 FMV and a $30,000 adjusted basis. Gary's basis in the Key stock (a capital asset) surrendered is $120,000. If Gary relies on the open transaction doctrine, at the liquidation date he must recognize a

• A) $70,000 capital gain.
• B) $10,000 capital loss.
• C) $30,000 capital loss.
• D) $0 gain.

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Definitions:

Muscle Contractions

The process by which muscle fibers shorten and generate tension in response to a stimulus, producing movement or maintaining posture.

Isometric

Pertaining to the contraction of a muscle without significant change in length, typically involved in exercises where the joint angle and muscle length do not change.

Isotonic

Referring to a solution that has the same salt concentration as the cells and blood of the body, or to muscle contractions where muscle length changes under a constant load.

Muscle Fibers

Muscle fibers are the individual contractile units within skeletal muscle, consisting of myofibrils that enable muscles to contract and generate movement.