Ralph Owns All the Stock of Silver,Inc

question 59

Essay

Ralph owns all the stock of Silver,Inc. ,a C corporation for which his adjusted basis is $225,000.Ralph founded Silver 12 years ago.The assets and liabilities of Silver are as follows:
*Accumulated depreciation of $55,000 has been deducted.
Ralph and the purchaser,Marilyn,have agreed to a purchase price of $350,000 less any outstanding liabilities.They are both in the 35% tax bracket,and Silver is in the 34% tax bracket.

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