The Stock in Black Corporation Is Owned Entirely by Nancy

question 84

Multiple Choice

The stock in Black Corporation is owned entirely by Nancy (80%) and Wanda (20%) , mother and daughter. Three years ago, Nancy contributed land (basis of $200,000, fair market value of $250,000) to Black Corporation in a transaction that qualified under § 351. In the current year and pursuant to a complete liquidation of Black, the land is distributed proportionately to Nancy and Wanda. At the time of the liquidating distribution, the land had a fair market value of $100,000. What amount of loss will Black Corporation recognize on the distribution of the land?

• A) $20,000.
• B) $80,000.
• C) $100,000.
• D) $150,000.
• E) None of the above.

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Definitions:

Stan Deetz

A scholar who contributed significantly to the field of organizational communication, focusing on the interplay between power, discourse, and democracy in the workplace.

Corporation

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—recognized as a separate entity from its owners, with its own rights and liabilities.

Social Groups

Collections of individuals who interact with each other based on shared interests, beliefs, or characteristics.

Ideologies

Systems of beliefs and values that shape societal norms, guiding political, economic, and social actions and perceptions.