Toby Made a Capital Contribution of a Pretzel Maker Having

question 87

Multiple Choice

Toby made a capital contribution of a pretzel maker having a $2,000 adjusted basis and a $200 FMV to Keke Corporation in exchange for additional stock last year. Later that same year, Keke sold the pretzel maker for $300. This year, Keke adopted a plan of liquidation. Previously, Keke had never used the pretzel maker in connection with the conduct of its trade or business. The sale was reported on Keke's current tax return. What reporting option does Keke Corporation not have because of its plan of liquidation?

• A) Recognize a gain of $100 for the current year.
• B) File an amended tax return for the tax year in which the tax loss was originally claimed.
• C) Recapture the loss on the tax return for the year the plan for liquidation was adopted.
• D) none of the above

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Definitions:

Slaveholders

Individuals or entities that owned one or more slaves, maintaining control over their lives, labor, and freedom.

European Immigrants

Individuals from Europe who have moved to another country, historically significant in the context of migration to the Americas, Australia, and other regions.

Railroad Development

The period of rapid expansion and construction of railroads, significantly influencing economic growth, settlement patterns, and regional connectivity.

Urban

Pertains to cities or towns, often characterized by higher population density and vast human features in contrast to areas outside of cities.