Warbler Corporation Distributes All of Its Property in a Complete

question 21

Multiple Choice

Warbler Corporation distributes all of its property in a complete liquidation.Kena,a shareholder,receives $7,000 cash and land having a fair market value of $120,000.Warbler had purchased the land three years ago for $105,000.Kena has a $22,000 basis in her Warbler stock.What is Kena's basis in the land received in the liquidation of Warbler?

• A)$0.
• B)$105,000.
• C)$120,000.
• D)$127,000.
• E)None of the above.

---

Definitions:

Troposphere

The lowest layer of Earth's atmosphere where weather happens and where most of the atmospheric water vapor exists.

Troposphere

The troposphere is the lowest layer of Earth's atmosphere, where most weather phenomena occur, extending from the Earth's surface to about 8 to 15 kilometers above.

Stratosphere

The stratosphere is a layer of the Earth's atmosphere located above the troposphere, characterized by a slight temperature increase with altitude and the presence of the ozone layer.

Ozone

A molecule composed of three oxygen atoms, found in the Earth's stratosphere, where it plays a critical role in protecting living organisms from ultraviolet radiation.