Specialty Corporation Distributes Land to One of Its Shareholders, Sam

question 92

Essay

Specialty Corporation distributes land to one of its shareholders, Sam, as part of a plan of liquidation. The land, which was used in Specialty's business, has an adjusted basis of $50,000 and an FMV of $130,000 on the date of distribution. Sam's basis in Specialty Corporation stock is $100,000. What is the amount and character of the gain/loss recognized by Specialty Corporation? What is the amount and character of the gain/loss recognized by Sam?

---

Definitions:

Pulse Oximetry

A non-invasive method used to measure the oxygen saturation level of the blood, indicating how well oxygen is being sent to parts of the body furthest from the heart.

Acute Shortness

Likely refers to acute shortness of breath or dyspnea, a sudden and intense difficulty in breathing, often indicative of a medical condition.

Recumbent Position

A lying down position in which a person is on their back, often used in medical settings for comfort or examination purposes.

Dizziness

A sensation of unsteadiness or a feeling of movement within one's environment, which may lead to balance issues.