Three Years Ago,Loon Corporation Purchased 100% of the Stock of Pelican

question 59

Multiple Choice

Three years ago,Loon Corporation purchased 100% of the stock of Pelican Corporation for $950,000.Currently,Pelican Corporation has assets with a basis of $700,000 and a fair market value of $1.2 million.If Loon liquidates Pelican,what basis will Loon have in the assets it acquires from Pelican Corporation?

• A)$0.
• B)$700,000.
• C)$950,000.
• D)$1.2 million.
• E)None of the above.

---

Definitions:

School Grades

Evaluations of a student's performance or achievement in academic subjects, often in the form of letters or numbers.

IQ Scores

Standardized scores derived from intelligence tests, intended to measure a person’s cognitive abilities in relation to their age group.

Labyrinth

A complex system of paths or tunnels in which it is easy to get lost; in anatomy, it refers to the inner ear's intricate structure involved in hearing and balance.

Cochlea

A spiral-shaped cavity of the inner ear that plays a crucial role in the sense of hearing by converting sound waves into nerve impulses.