Homewood Corporation Adopts a Plan of Liquidation on June 15

question 1

Multiple Choice

Homewood Corporation adopts a plan of liquidation on June 15 and shortly thereafter sells a parcel of land on which it realizes a $50,000 gain (excluding the effects of a $5,000 sales commission) .Homewood pays its legal counsel $2,000 to draft the plan of liquidation.The accountant fees for the liquidation are $1,000,which are also paid during the year.What is Homewood Corporation's realized gain on the sale of land and deductible liquidation expenses?

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Definitions:

Glycine

The smallest and simplest amino acid, important in the synthesis of proteins and other metabolic functions.

Enkephalins

Peptides in the brain that bind to opiate receptors, acting as natural painkillers and also involved in various bodily functions.

Presynaptic Inhibition

Presynaptic Inhibition is a mechanism where the release of neurotransmitters from a neuron is decreased, modulating neural activity and preventing overstimulation.

Pain Signals

Neural transmissions that convey the sensation of pain from the peripheral nervous system to the central nervous system.