Robot Corporation Is Liquidated, with Marty Receiving Property Having an Adjusted

question 88

Multiple Choice

Robot Corporation is liquidated, with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000. The property is subject to an $80,000 mortgage, which Marty assumes. Marty's basis in the Robot stock surrendered is $50,000. Marty must recognize

• A)a $40,000 loss.
• B)no gain or loss.
• C)a $60,000 gain.
• D)none of the above.

---

Definitions:

Capacitor-run Motors

Electric motors that use a capacitor in their circuit for the purpose of running efficiently, often found in HVAC systems and smaller machinery.

Paper And Foil

Materials often used in the construction of capacitors, with paper acting as the dielectric medium and foil as electrodes.

Phase-shift

The change in phase angle between two points in a wave or between two waves, which can affect wave interference and signal transmission.

Operating Torque

The amount of torque a motor needs to produce to maintain its operation under specific conditions.