Texas Corporation Is Undergoing a Complete Liquidation and Distributes Land

question 11

Multiple Choice

Texas Corporation is undergoing a complete liquidation and distributes land to Robert, one of its shareholders, in exchange for all of Robert's stock. The land has a basis of $300,000 and an FMV of $400,000 on Texas Corporation's books and is subject to a $325,000 liability. Robert assumes the liability on the property. Robert's basis in his Texas Corporation stock is $100,000. What is the amount of gain or loss recognized by Robert on the distribution?

• A)$175,000 gain
• B)$25,000 gain
• C)$25,000 loss
• D)No gain or loss is recognized.

Identify factors influencing academic performance and attendance.

Grasp effective strategies for taking different types of tests and improving academic skills.

Recognize the role and characteristics of different psychological perspectives and their practitioners.

Appreciate the empirical basis of psychological research.

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Definitions:

Cognitive Restructuring

A set of cognitive therapy techniques for changing a person’s maladaptive beliefs or interpretations through persuasion and confrontation.

Systematic Desensitization

A behavioral therapy technique designed to reduce phobic responses and anxiety through gradual exposure to the feared object or situation paired with relaxation exercises.

Muscular Relaxation

The process of relieving tension in the muscles, leading to a state of physical comfort and reduced stress.

Free Association

Method used in psychoanalytic therapy in which the patient is to say anything that comes to her mind, no matter how apparently trivial, unrelated, or embarrassing.