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?
$\begin{array}{ll}\text { Arturo } & \text { Global } \\a.\$ 16,000 & \$ 8,000 \\b.\$ 16,000 & \$-0- \\c.\$ 30,000 & \$-0- \\d.\$ 30,000 & \$ 30,000\end{array}$

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Definitions:

Common Dividends

Payments made out of a company's profits to shareholders, representing a share in the earnings of the company.

Shares Outstanding

Shares outstanding refer to the total number of shares of a company held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

BEP

BEP, or Break-Even Point, is the financial analysis point at which total costs and total revenues are equal, implying no net loss or gain.

Operating Costs

Expenses associated with the day-to-day operations of a business, including costs of goods sold, payroll, and overhead.