Parent Corporation Owns 100% of the Single Class of Stock

question 22

Multiple Choice

Parent Corporation owns 100% of the single class of stock of Subsidiary Corporation. Parent's basis in the Subsidiary stock is $500,000 when Parent completely liquidates Subsidiary Corporation within a single tax year. The Subsidiary Corporation assets have a $700,000 adjusted basis and an $800,000 FMV at liquidation. As a result of the liquidation, Parent must recognize a

• A)$0 gain.
• B)$200,000 gain.
• C)$300,000 gain.
• D)none of the above

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Definitions:

Nonverbal Communication

The process of transmitting messages without using words, instead through gestures, facial expressions, body language, tone of voice, and other non-verbal cues.

Jargon

Jargon includes specialized terms and phrases that are used in particular professions, industries, or groups and may be difficult for outsiders to understand.

Presentation Plan

A detailed strategy or outline designed to guide the delivery of a presentation or talk.

Videoconferencing

A method of using video and audio technologies to conduct a conference between two or more participants at different sites by using computer networks to transmit audio and video data.