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36/37 36. A shareholder?s adjusted basis in the...

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36/37 36. A shareholder?s adjusted basis in the shareholder?s stock is used to make determinations with respect to which of the following? a. the extent to which a distribution made by the corporation to the shareholder is taxable. b. the amount of losses that shareholders may deduct in a given year. c. the shareholder?s realized gain or loss upon the sale or exchange of the stock. d. all of the above. 37. In the current year, Sue received a liquidating distribution of real estate from UTSRQ Partnership, a general partnership. The real estate had an adjusted basis to the partnership of $35,000 and a fair market value of $90,000 on the date of the distribution. Sue?s adjusted basis in her 20 percent interest in UTSRQ Partnership was $50,000. How much gain or loss did Sue recognize on receipt of the distribution and what is her basis in the real estate? a. 0 gain or loss recognized and a $50,000 basis in the real estate. b. ($15,000) loss recognized and a $35,000 basis in the real estate. c. 0 gain or loss recognized and a $35,000 basis in the real estate. d. $40,000 gain recognized and a $90,000 basis in real estate. e. $15,000 gain recognized and a $50,000 basis in real estate.

 

Paper#9498 | Written in 18-Jul-2015

Price : $25
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