Fender Corporation Makes a Cash Distribution of $40,000 to Gibson

question 89

Multiple Choice

Fender Corporation makes a cash distribution of $40,000 to Gibson in complete liquidation of the corporation. Gibson's basis in Fender stock is $18,000. What must Gibson report as income from the cash distribution?

• A)$- 0 -
• B)$18,000
• C)$22,000
• D)$40,000

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Definitions:

Mood-Congruent Memory

The tendency to recall memories that are consistent with one's current mood, enhancing mood conformity.

Sad Experiences

Events or situations that induce feelings of sorrow, grief, or unhappiness.

Recall

The act of retrieving information or memories from one's past experiences, without being cued.

Priming

A phenomenon in psychology where exposure to one stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.