Key Corporation Distributes a Patent with an Indeterminable Value to Gary

question 62

Multiple Choice

Key Corporation distributes a patent with an indeterminable value to Gary as part of a plan of complete liquidation. In addition, Gary receives $40,000 cash and land with a $70,000 FMV and a $30,000 adjusted basis. Gary's basis in the Key stock (a capital asset) surrendered is $120,000. If Gary relies on the open transaction doctrine, at the liquidation date he must recognize a

• A)$0 gain.
• B)$10,000 capital loss.
• C)$30,000 capital loss.
• D)$70,000 capital gain.

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Definitions:

Sympathetic Nervous System

is a part of the autonomic nervous system that orchestrates the body's rapid involuntary response to dangerous or stressful situations, often referred to as the 'fight or flight' response.

Heart Rate

The number of heartbeats per unit of time, usually measured in beats per minute (bpm), indicating cardiovascular activity and health.

Parietal Lobe

A region of the cerebral cortex that plays a key role in processing sensory information from various parts of the body.

Peripheral Nerves

Nerves located outside the brain and spinal cord that connect the central nervous system to limbs and organs.