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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Definitions:

Industry

The economic activity concerned with the processing of raw materials and manufacturing of goods in factories, also referred to as a sector of the economy.

Mistrust

The lack of trust or confidence in someone or something, often resulting from past experiences or perceived risks.

Attachment

The emotional bond that forms between newborns and their primary caregivers, crucial for social and emotional development.

Mothers

Women who have given birth to, adopted, or otherwise serve as the primary female parent figure in a child's life.