On April 7, 2011, Crow Corporation Acquired Land in a Transaction

question 70

Multiple Choice

On April 7, 2011, Crow Corporation acquired land in a transaction that qualified under § 351.The land had a basis of $400,000 to the contributing shareholder and a fair market value of $310,000.Assume that the shareholder also transferred equipment (basis of $100,000, fair market value of $200,000) in the same § 351 exchange.Crow Corporation adopted a plan of liquidation on October 5, 2012.On December 7, 2012, Crow Corporation distributes the land to Ali, a shareholder who owns 20% of the stock in Crow Corporation.The land's fair market value was $230,000 on the date of the distribution to Ali.Crow Corporation acquired the land to use as security for a loan it had hoped to obtain from a local bank.In negotiating with the bank for a loan, the bank required the additional capital investment as a condition of its making a loan to Crow Corporation.How much loss can Crow Corporation recognize on the distribution of the land?

• A)$0.
• B)$80,000.
• C)$90,000.
• D)$170,000.
• E)None of the above.

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Definitions:

Water-Soluble Drugs

Medications that can dissolve in water, allowing them to be readily absorbed into the bloodstream and distributed throughout the body for therapeutic effect.

Amphetamines

A class of stimulant drugs that increase activity within the brain and nervous system, often used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy.

Drug Administration

The process by which a drug is given to a patient, which can include various methods such as orally, intravenously, or topically.

Oral Consumption

The intake of substances through the mouth, typically referring to eating or drinking.