Key Corporation Distributes a Patent with an Indeterminable Value to Gary

question 62

Multiple Choice

Key Corporation distributes a patent with an indeterminable value to Gary as part of a plan of complete liquidation. In addition, Gary receives $40,000 cash and land with a $70,000 FMV and a $30,000 adjusted basis. Gary's basis in the Key stock (a capital asset) surrendered is $120,000. If Gary relies on the open transaction doctrine, at the liquidation date he must recognize a

• A)$0 gain.
• B)$10,000 capital loss.
• C)$30,000 capital loss.
• D)$70,000 capital gain.

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Definitions:

Violence Rates

Statistics that indicate the frequency or number of violent incidents within a specific time period or area.

African Americans

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.

Capital Punishment

The legally authorized killing of someone as punishment for a crime, also known as the death penalty.

Murder Rates

The frequency or number of murders within a particular region or population over a specified period of time.