During 2017, Track Corporation Distributes Property to Cindy as Part

question 9

Multiple Choice

During 2017, Track Corporation distributes property to Cindy as part of a complete liquidation. Property included in the distribution is $30,000 in cash, land with a $40,000 adjusted basis and a $60,000 FMV, and a copyright without an ascertainable FMV and having a zero basis. The first payment to Cindy of $8,000 for use of the copyrighted property occurs in 2018. Cindy has a basis in the Track stock of $95,000 immediately preceding the liquidation. The minimum amount of gain that Cindy must recognize is a

• A) $0 gain in 2017.
• B) $3,000 gain in 2018.
• C) $3,000 gain in 2017, which is reported on an amended current- year tax return that is filed in 2018.
• D) none of the above

---

Definitions:

Labor Force Statistics

Data and metrics that provide information about the employment and unemployment rates, workforce composition, and other labor market indicators.

Efficiency Wages

Wages set above the equilibrium level by employers to increase worker productivity, discourage turnover, and reduce shirking.

Efficiency-Wage Theory

A theory suggesting employers pay above the market equilibrium wage to increase worker productivity.

Economic Theory

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.