The Stock in Black Corporation Is Owned Entirely by Nancy

question 84

Multiple Choice

The stock in Black Corporation is owned entirely by Nancy (80%) and Wanda (20%) , mother and daughter. Three years ago, Nancy contributed land (basis of $200,000, fair market value of $250,000) to Black Corporation in a transaction that qualified under § 351. In the current year and pursuant to a complete liquidation of Black, the land is distributed proportionately to Nancy and Wanda. At the time of the liquidating distribution, the land had a fair market value of $100,000. What amount of loss will Black Corporation recognize on the distribution of the land?

• A) $20,000.
• B) $80,000.
• C) $100,000.
• D) $150,000.
• E) None of the above.

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Definitions:

Place Of Shipment

The location where goods are loaded and dispatched to the buyer according to the terms of a sales contract.

Time And Place

The specific moment and location where an event occurs or is scheduled to occur.

Rejected Goods

Items that have been refused acceptance by the buyer because they do not meet the specifications, quality standards, or conditions agreed upon in the contract.

Gross Proceeds

The total amount of money generated from a transaction or series of transactions before any deductions or expenses are taken out.