Fernando Was a One-Third Shareholder in Rodriguez, Inc

question 28

Multiple Choice

Fernando was a one-third shareholder in Rodriguez, Inc.prior to its liquidation in March.Fernando's basis in his Rodriguez stock was $50,000.In March, Rodriguez distributed property worth $125,000 (basis $80,000) in complete liquidation of Fernando's Rodriguez shares.Fernando took the property subject to a $30,000 liability.How much taxable gain must Fernando recognize upon receipt of the property from Rodriguez?

• A)Zero
• B)$45,000
• C)$75,000
• D)$30,000

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Definitions:

Preponderance Of The Evidence

A standard of proof in civil cases, requiring that the evidence on one side outweighs the evidence on the other side.

Tort Law

A segment of law dealing with civil wrongs or injuries caused by one party to another, leading to legal liability and compensation claims.

Hate Speech

Hate speech encompasses expressions intended to vilify, humiliate, or incite hatred against a group or individuals based on attributes such as race, religion, ethnic origin, sexual orientation, or disability.

Arson

The criminal act of deliberately setting fire to property, often with malicious intent.