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:

Land Reform

involves the redistribution of land from large landowners to those with little or no land, aimed at improving equity and agricultural productivity.

Early 1950s

A period post-World War II, around 1950 to 1953, characterized by significant social, political, and economic recovery and development.

Redistributing Land

The process of realigning or reassigning the ownership and control of land to achieve more equitable distribution among a population.

Neoliberal Globalization

A process emphasizing the global integration of economies through free-market policies, reduction of trade barriers, and increased capital flows, under the influence of neoliberal ideologies.