The Stock in Black Corporation Is Owned Entirely by Nancy

question 84

Multiple Choice

The stock in Black Corporation is owned entirely by Nancy (80%) and Wanda (20%) , mother and daughter. Three years ago, Nancy contributed land (basis of $200,000, fair market value of $250,000) to Black Corporation in a transaction that qualified under § 351. In the current year and pursuant to a complete liquidation of Black, the land is distributed proportionately to Nancy and Wanda. At the time of the liquidating distribution, the land had a fair market value of $100,000. What amount of loss will Black Corporation recognize on the distribution of the land?

• A) $20,000.
• B) $80,000.
• C) $100,000.
• D) $150,000.
• E) None of the above.

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Definitions:

Exercise

Physical activity conducted to improve health or maintain fitness, ranging from walking and running to sports and strength training.

Weight Gain

The increase in body weight over a period of time, which may result from increased muscle mass, fat deposits, or fluid retention.

Metabolic Rate

The speed at which the body converts food and oxygen into energy, critical in determining weight loss or gain.

Junk Food

Food items with little nutritional value, high in calories, sugars, fats, and salts, often processed or fast food.