Finch Corporation Distributes Property (Basis of $225,000, Fair Market Value

question 29

Multiple Choice

Finch Corporation distributes property (basis of $225,000, fair market value of $300,000) to a shareholder in a distribution that is a qualifying stock redemption. The property is subject to a liability of $160,000, which the shareholder assumes. The basis of the property to the shareholder is:

• A) $0.
• B) $140,000.
• C) $225,000.
• D) $300,000.
• E) None of the above.

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Definitions:

Union Formation

The process of organizing a group of workers into a union to negotiate collectively with their employer regarding wages, working conditions, and other employment rights.

Certify

The act of officially confirming the authenticity or validity of something, typically through a formal statement or document.

Representatives

Individuals or entities appointed or elected to act or speak on behalf of others.