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

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Definitions:

Estimated Dose

The approximate amount of a medication or treatment calculated to have a desired therapeutic effect in the absence of exact measurement.

After Meals

A term used to indicate that medication should be taken or an action performed after eating.

Without

Lacking or not including something; absence of.

Immediately

Without delay; happening right away.