Robot Corporation Is Liquidated,with Marty Receiving Property Having an Adjusted

question 61

Multiple Choice

Robot Corporation is liquidated,with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000.The property is subject to a $80,000 mortgage,which Marty assumes.Marty's basis in the Robot stock surrendered is $50,000.Marty must recognize

• A)a $40,000 loss.
• B)no gain or loss.
• C)a $60,000 gain.
• D)none of the above

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Definitions:

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A non-volatile storage device that stores digitally encoded data on rapidly rotating platters with magnetic surfaces.

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A concise summary or overview of a document, concept, or process, meant to provide essential information quickly.

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A graphical interface element that displays the contents of a directory in a file system.