Global Corporation Distributes Property with a Basis of $22,000 and a Fair

question 58

Short Answer

Global Corporation distributes property with a basis of $22,000 and a fair market value of $30,000 to Arturo in complete liquidation of the corporation.Arturo's basis in the stock is $14,000.What must Arturo and Global report as income upon the liquidation of Global?
$\begin{array}{ll}\text { Arturo } & \text { Global } \\a.\$ 16,000 & \$ 8,000 \\b.\$ 16,000 & \$-0- \\c.\$ 30,000 & \$-0- \\d.\$ 30,000 & \$ 30,000\end{array}$

---

Definitions:

Pangea

Supercontinent that began to form about 300 million years ago and broke up 100 million years later.

Land Mass

A large contiguous area of land recognized as a distinct geographical entity, not fully covered by water.

Geologic Times

A system of chronological dating that relates geological strata to time, used to describe the timing and relationships between events that have occurred throughout Earth's history.

First Land Plants

Early plants that began to colonize the land over 470 million years ago, evolving adaptations to survive in terrestrial environments.