Global Corporation Distributes Property with a Basis of $22,000 and a Fair

question 31

Short Answer

Global Corporation distributes property with a basis of $22,000 and a fair market value of $30,000 to Arturo in complete liquidation of the corporation.Arturo's basis in the stock is $14,000.What must Arturo and Global report as income upon the liquidation of Global?
$\begin{array}{lll} & \text { Arturo } & \text { Global } \\\text { a. } & \$ 16,000 & \$ 8,000 \\\text { b. } & \$ 16,000 & \$-0- \\\text { c. } & \$ 30,000 & \$-0- \\\text { d. } & \$ 30,000 & \$ 30,000\end{array}$

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Definitions:

Consumption

The use of goods and services by households.

National Income

The total value of all goods and services produced by a country's economy over a specific period, including foreign income.

Disposable Income

The amount of money an individual or household has to spend or save after income taxes are deducted.

Real GDP

A measure of a country's economic output that accounts for changes in the price level, adjusting for inflation or deflation to reflect the true value of goods and services produced.