Mario Receives a Liquidating Distribution of Land with a Fair

question 8

Multiple Choice

Mario receives a liquidating distribution of land with a fair market value of $19,000 and a basis of $15,000 from Blithe Corporation,an S corporation.Mario's basis in the stock is $21,000.What must Mario and Blithe report as income (loss) from the property distribution?
​
Mario Blithe

• A)$-0- $-0-
• B)$(2,000)$4,000
• C)$(6,000)$-0-
• D)$(6,000)$4,000

---

Definitions:

Physical Environment

The tangible, concrete surroundings in which an organism or group operates, including both natural and built structures.

Ambience

The character or atmosphere of a place or environment, often perceived through sensory elements like light, sound, and aroma.

Affective Reaction

An emotional response or feeling that an individual has towards a particular stimulus or situation.

Territoriality

The behavioral pattern of individuals or groups marking and defending an area they consider their own, often against intruders or competitors.