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Yellow Corporation transfers land (basis of $210,0...

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Yellow Corporation transfers land (basis of $210,000, fair market value of $300,000) to Joe, a shareholder, to carry out a qualifying stock redemption. The land is distributed subject to a $320,000 liability. With respect to the redemption: a. Yellow Corporation will recognize a gain of $20,000 b. Yellow Corporation will recognize a gain fo $90,000 c. Yellow Corporation will recognize a gain of $110,000 d. Yellow Corporation will not recognize a gain e. None of the above

 

Paper#4487 | Written in 18-Jul-2015

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