Toby Made a Capital Contribution of a Pretzel Maker Having

question 81

Multiple Choice

Toby made a capital contribution of a pretzel maker having a $2,000 adjusted basis and a $200 FMV to Keke Corporation in exchange for additional stock last year. Later that same year, Keke sold the pretzel maker for $300. This year, Keke adopted a plan of liquidation. Previously, Keke had never used the pretzel maker in connection with the conduct of its trade or business. The sale was reported on Keke's current tax return. What reporting option does Keke Corporation not have because of its plan of liquidation?

• A)File an amended tax return for the tax year in which the tax loss was originally claimed.
• B)Recapture the loss on the tax return for the year the plan for liquidation was adopted.
• C)Recognize a gain of $100 for the current year.
• D)none of the above

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Definitions:

Marijuana Use

The consumption of cannabis, whether for medical or recreational purposes, which can alter perception, mood, and cognitive functions.

Man-Made Stimulant

Synthetic substances designed to increase alertness, attention, and energy by stimulating the central nervous system.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out neural signals.

Heavily Drinking

The consumption of alcoholic beverages in large quantities over a short period of time, potentially leading to alcohol poisoning or long-term health issues.