Homewood Corporation Adopts a Plan of Liquidation on June 15

question 57

Multiple Choice

Homewood Corporation adopts a plan of liquidation on June 15 and shortly thereafter sells a parcel of land on which it realizes a $50,000 gain (excluding the effects of a $5,000 sales commission) .Homewood pays its legal counsel $2,000 to draft the plan of liquidation.The accountant fees for the liquidation are $1,000,which are also paid during the year.What is Homewood Corporation's realized gain on the sale of land and deductible liquidation expenses?

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Evidence

Information or facts that are used to support the validity of a statement or argument.

Interpretation

An expression of the meaning or significance of a wide variety of experiences, situations, data, events, judgments, conventions, beliefs, rules, procedures, or criteria.

Inference

Identifies and secures elements needed to draw reasonable conclusions; it forms conjectures and hypotheses, it considers relevant information, and it reduces or draws out the consequences flowing from data, statements, principles, evidence, judgments, beliefs, opinions, concepts, descriptions, questions, or other forms of representation.

Spontaneous Generation

The outdated belief that living organisms can arise from non-living matter without any biological process.