Brooks Corporation Distributes Property with a Basis of $20,000 and a Fair

question 41

Multiple Choice

Brooks Corporation distributes property with a basis of $20,000 and a fair market value of $25,000 to Caroline in complete liquidation of the corporation.Caroline's basis in the stock is $32,000.What must Caroline and Brooks report as income (loss) upon the liquidation of Brooks?
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Caroline Brooks

• A)$(12,000)$(7,000)
• B)$(12,000)$5,000
• C)$(12,000)$-0-
• D)$(7,000)$5,000

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Definitions:

Allergic Rhinitis

An allergic reaction causing symptoms like a runny nose, sneezing, and itchy eyes, commonly known as hay fever.

Nasal Mucosa

The moist, delicate tissue lining the inside of the nose, which plays a role in humidifying the air we breathe and trapping particles.

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A chronic respiratory condition marked by episodes of airway constriction, causing difficulty in breathing.

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An infection that affects both lungs, specifically the basal segments, leading to inflammation and often respiratory distress.