Brooks Corporation Distributes Property with a Basis of $20,000 and a Fair

question 44

Short Answer

Brooks Corporation distributes property with a basis of $20,000 and a fair market value of $25,000 to Caroline in complete liquidation of the corporation.Caroline's basis in the stock is $32,000.What must Caroline and Brooks report as income (loss)upon the liquidation of Brooks?
$\quad$ Caroline $\quad$$\quad$ Brooks
a. $\$ ( 12,000 ) \quad \$ ( 7,000 )$
b. $\$ ( 12,000 ) \quad \$ 5,000$
c. $\$ ( 12,000 ) \quad \$ - 0 -$
d. $\$ ( 7,000 ) \quad \$ 5,000$

---

Definitions:

Job

A paid position of regular employment, often entailing specific duties, responsibilities, and hours of work.

Personality Tests

Assessments designed to evaluate individuals' character traits, behaviors, and personality types.

Aptitude Tests

Aptitude tests are standardized assessments designed to measure an individual’s potential to acquire skills or achieve success in specific activities or knowledge areas.

Job-Hunt

The process of actively seeking employment opportunities through various means and strategies.