During 2013,Track Corporation Distributes Property to Cindy as Part of a Complete

question 102

Multiple Choice

During 2013,Track Corporation distributes property to Cindy as part of a complete liquidation.Property included in the distribution is $30,000 in cash,land with a $40,000 adjusted basis and a $60,000 FMV,and a copyright without an ascertainable FMV and having a zero basis.The first payment to Cindy of $8,000 for use of the copyrighted property occurs in 2014.Cindy has a basis in the Track stock of $95,000 immediately preceding the liquidation.The minimum amount of gain that Cindy must recognize is a

• A)$3,000 gain in 2014.
• B)$0 gain in 2013.
• C)$3,000 gain in 2013,which is reported on an amended current-year tax return that is filed in 2014.
• D)none of the above

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Definitions:

Self-Blame

The act of attributing personal failures or negative events to one's own deficiencies or actions.

Coping Strategy

A method or technique used to manage or overcome demands and conflicts in life.

Repression

The unconscious exclusion of painful impulses, desires, or fears from the conscious mind.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, often as a way to protect themselves from uncomfortable feelings.