What is Alexander's net gain or loss on the liquidation of his 100 percent interest in an S corporation if the corporation distributes the following three assets to him in exchange for his stock: Prior to any distributions,Alexander's basis in his S corporation interest was $160,000.
A)($12,000)
B)($22,000)
C)$10,000
D)$22,000

Question

What is Alexander's net gain or loss on the liquidation of his 100 percent interest in an S corporation if the corporation distributes the following three assets to him in exchange for his stock:  Prior to any distributions,Alexander's basis in his S corporation interest was $160,000.
A)($12,000) 
B)($22,000) 
C)$10,000 
D)$22,000

Quizplus · Accepted Answer

$170,000 - ($160,000 + $7,000 - 10,000 + $25,000)

What Is Alexander's Net Gain or Loss on the Liquidation