Mario Receives a Liquidating Distribution of Land with a Fair $\begin{array}{llcc} \text { Malcolm } & \text { Blithe } \\\end{array}$

question 41

Short Answer

Mario receives a liquidating distribution of land with a fair market value of $19,000 and a basis of $15,000 from Blithe Corporation, an S corporation. Mario's basis in the stock is $21,000. What must Mario and Blithe report as income (loss) from the property distribution? $\begin{array}{llcc} \text { Malcolm } & \text { Blithe } \\\end{array}$
A) $\$-0- \quad \$-0-$
B) $\$(2,000) \quad \$4,000$
C) $\$(6,000) \quad \$-0-$
D) $\$(6,000) \quad \$4,000$ ?

• A) \(\$-0- \quad \$-0-\)
• B) \( \$(2,000) \quad \$4,000 \)
• C)\( \$(6,000) \quad \$-0- \)
• D)\( \$(6,000) \quad \$4,000 \) ?

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