Parent Corporation Owns 100% of the Single Class of Stock

question 22

Multiple Choice

Parent Corporation owns 100% of the single class of stock of Subsidiary Corporation. Parent's basis in the Subsidiary stock is $500,000 when Parent completely liquidates Subsidiary Corporation within a single tax year. The Subsidiary Corporation assets have a $700,000 adjusted basis and an $800,000 FMV at liquidation. As a result of the liquidation, Parent must recognize a

• A)$0 gain.
• B)$200,000 gain.
• C)$300,000 gain.
• D)none of the above

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Definitions:

Self-Help Group

A supportive group setting where members share common experiences and challenges, often related to recovery or personal growth.

Giving Away Possessions

An act that may indicate a person's desire to put affairs in order or could be a warning sign of depression or suicidal thoughts, where the individual starts to distribute personal belongings to family and friends.

Impending Suicide Attempt

An immediate risk of self-harm or suicide, indicating a critical need for intervention.

Discharge Planning

The process of preparing an individual for release from a hospital or other inpatient facility, ensuring continuity of care and a smooth transition.