The Stock in Lark Corporation Is Owned Equally by Olaf

question 43

Multiple Choice

The stock in Lark Corporation is owned equally by Olaf and his son Pete.In a liquidation of the corporation,Lark Corporation distributes to Olaf land that it had purchased three years ago for $550,000.The property has a fair market value on the date of distribution of $400,000.Later,Olaf sells the land for $420,000.What loss will Lark Corporation recognize with respect to the distribution of the land?

• A)$0.
• B)$20,000.
• C)$130,000.
• D)$150,000.
• E)None of the above.

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Definitions:

Sociable

Describes someone who enjoys being in the company of others and actively seeks out social interactions.

Approachable

Being easy to approach or speak to; friendly and receptive to others.

Allness

Tendency to use language to make unqualified, often untrue generalizations.

Polarization

The process in which opinions and attitudes become more extreme, often leading to increased division within groups or societies.