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. $\$ ( 7,000 ) \quad \$ 5,000$

Identify tenant responsibilities and liabilities in relation to property damage and lease agreements.

Recognize legal protections and obligations regarding security deposits.

Understand laws against discrimination in housing and tenant rights.

Comprehend the rights and obligations concerning the transfer of lease interest.

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