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Star Corporation,in Complete Liquidation,makes Distributions to Its Two Shareholders

question 61

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Star Corporation,in complete liquidation,makes distributions to its two shareholders.Tim surrenders his Star stock (adjusted basis of $70,000) to the corporation in exchange for land with a $90,000 adjusted basis and a $100,000 FMV.Lindsey receives $100,000 cash for her shares (adjusted basis $110,000) .What is the amount of gains and or losses recognized by Tim and Lindsey as a result of these transactions?


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