During 2013,Track Corporation Distributes Property to Cindy as Part of a Complete

question 102

Multiple Choice

During 2013,Track Corporation distributes property to Cindy as part of a complete liquidation.Property included in the distribution is $30,000 in cash,land with a $40,000 adjusted basis and a $60,000 FMV,and a copyright without an ascertainable FMV and having a zero basis.The first payment to Cindy of $8,000 for use of the copyrighted property occurs in 2014.Cindy has a basis in the Track stock of $95,000 immediately preceding the liquidation.The minimum amount of gain that Cindy must recognize is a

• A)$3,000 gain in 2014.
• B)$0 gain in 2013.
• C)$3,000 gain in 2013,which is reported on an amended current-year tax return that is filed in 2014.
• D)none of the above

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Definitions:

Environment

The environment or the conditions under which a person, animal, or plant exists or functions.

Culture

The social behavior, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the individuals in these groups.

Genes

Units of heredity made up of DNA, responsible for governing characteristics and traits passed from parents to offspring.

Father Care

The involvement and care provided by a father to his children, which can include emotional support, physical care, and financial provision.