Indigo,the Parent Corporation,has a Basis of $550,000 in the Stock

question 48

Multiple Choice

Indigo,the parent corporation,has a basis of $550,000 in the stock of Brown Corporation,a subsidiary in which it owns 90% of all classes of stock.Indigo purchased the stock in Brown Corporation 10 years ago.In the current year,Indigo Corporation liquidates Brown Corporation and acquires assets worth $800,000 and with a tax basis to Brown Corporation of $625,000.What basis will Indigo Corporation have in the assets acquired from Brown Corporation?

• A)$800,000.
• B)$625,000.
• C)$550,000.
• D)$0.
• E)None of the above.

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Definitions:

Ethical Egoism

A philosophical stance suggesting that actions are morally right if they promote the individual's own best interest.

Benefit Me

Refers to advantages or positive outcomes that accrue to an individual's favor or interest.

Antiracist Appropriation

The act of adopting elements of a culture by those who actively oppose racism, with the intention of showing solidarity or respect, though it can sometimes lead to controversy over authenticity or ownership.