Fender Corporation Makes a Cash Distribution of $40,000 to Gibson

question 89

Multiple Choice

Fender Corporation makes a cash distribution of $40,000 to Gibson in complete liquidation of the corporation. Gibson's basis in Fender stock is $18,000. What must Gibson report as income from the cash distribution?

• A)$- 0 -
• B)$18,000
• C)$22,000
• D)$40,000

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Definitions:

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