On January 15, 2012, the Board of Directors of K

question 45

Multiple Choice

On January 15, 2012, the Board of Directors of K Corporation voted to adopt a plan of liquidation as of February 1, 2012.On January 25, 2012, they sell land and realize a $400,000 loss.On February 15, 2012, they sell a building acquired in 2003 and depreciated under ACRS at a $200,000 gain (total depreciation recapture potential of $380,000) .K distributes all of its assets to its shareholders on December 31, 2012.On K's final tax return, it will report

• A)$400,000 loss on sale of land only
• B)No gain or loss on sale of land and building
• C)$400,000 loss on sale of land and $200,000 ordinary income on sale of building
• D)$200,000 ordinary income on sale of building only

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Definitions:

Dependency Theory

A theory that suggests developing countries are kept in a state of economic underdevelopment by the exploitative mechanisms of the global capitalist system.

World Systems Theorists

Scholars who argue that global socio-economic systems and relationships between countries shape individual societies, focusing on how historical and modern economic practices influence global inequality.

Economic System

The method by which countries and governments distribute resources and trade goods and services, including capitalism, socialism, and communism.

Birthrates

The ratio within a population of the number of births per population size over a specific period, acting as an indicator of demographic trends.