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Warbler Corporation ( E&P of $800,00) distributes...




Warbler Corporation ( E&P of $800,00) distributes all of its property in a complete liquidation. Kena, a shareholder, receives $7,000 cash and land having fair market value of $120,000. Warbler had purchased the land three years ago for $105,000. Kena has a $22,000 basis in her Warbler stock that she purchased 10 years ago. What is Kena's gain or loss on the liquidation of Warbler? a. $0 b. $105,000 long-term capital gain c. $7,000 dividend and $98,000 long-term capital gain d. $127,000 dividend e. None of the above.


Paper#11008 | Written in 18-Jul-2015

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