Zeus Owns 100% of Grecian Image Corporation and His Basis

question 13

Multiple Choice

Zeus owns 100% of Grecian Image Corporation and his basis in the stock is $105,000.He receives cash of $20,000 and property with FMV of $100,000 and basis of $140,000 in complete liquidation of his ownership interest.What amount of gain or loss should Zeus recognize as a result of this transaction?

• A)$5,000 loss.
• B)$15,000 gain.
• C)$55,000 gain.
• D)Some other number.

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Definitions:

Family Class Sponsorships

A program specific to certain countries like Canada, allowing citizens or permanent residents to sponsor relatives, including spouses, partners, children, or other eligible relatives for immigration.

Economic Class

An immigration category that includes federal and Quebec-selected skilled workers, federal and Quebec-selected business immigrants, provincial and territorial nominees, the Canadian Experience Class (CEC), and caregivers, as well as spouses, partners, and dependants who accompany the principal applicants in any of these economic categories (Government of Canada, 2016a).

Refugee Class

A classification within immigration policy referring to individuals granted asylum or refugee status due to persecution or fear of persecution in their home countries.

Singh Decision

Landmark decision in refugee determination made by the Supreme Court of Canada in 1985; the decision protects the right of every refugee claimant to an oral hearing.