Ten years ago Finn Corporation formed a new 100 percent owned subsidiary, Wing Corporation, with a $500,000 investment. Wing Corporation is completely liquidated this year, with all assets distributed to Finn Corporation. As of the liquidation date, Wing has a basis in its assets of $350,000, and the assets are valued at $550,000. What is the gain or loss recognized by Finn Corporation due to the liquidating distribution, and what is Finn Corporation's basis in the assets received from Wing Corporation?

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The Answer of Ten years ago Finn Corporation formed a new 100 percent owned subsidiary, Wing Corporation, with a $500,000 investment. Wing Corporation is completely liquidated this year, with all assets distributed to Finn Corporation. As of the liquidation date, Wing has a basis in its assets of $350,000, and the assets are valued at $550,000. What is the gain or loss recognized by Finn Corporation due to the liquidating distribution, and what is Finn Corporation's basis in the assets received from Wing Corporation?

Ten Years Ago Finn Corporation Formed a New 100 Percent