Market Corporation Owns 100% of Subsidiary Corporation's Stock

question 5

Multiple Choice

Market Corporation owns 100% of Subsidiary Corporation's stock. Market Corporation completely liquidates Subsidiary Corporation, receiving land with a $400,000 adjusted basis and a $500,000 FMV in exchange for Subsidiary stock, which has a $300,000 adjusted basis. Market Corporation has a basis in the land of

• A)$300,000.
• B)$400,000.
• C)$500,000.
• D)none of the above

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