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:

Meadow Voles

Small rodents primarily found in North America, known for their role in ecological systems and studies in behavioral neuroscience focused on social attachment and mating systems.

Pine Voles

A species of small rodent, often studied for their complex social behaviors and bonding patterns.

Spatial Skills

Spatial skills involve the ability to understand, reason, and remember the spatial relationships among objects or space.

Larger Territories

Expansive areas or regions under the control of a particular group, organism, or government, often associated with specific advantages or resources.