Lee owns all the stock of Vireo,Inc.,a C corporation for which he has an adjusted basis of $150,000.The assets of Vireo,Inc.,are as follows:
$\begin{array}{lll}
&\text{Adusted Basys} &\text{FMV}\
\text { Cash } & \$ 35,000 &\$ 35,000\
\text { Accounts recerivable } & 20,000 & 20,000 \
\text { Inventory } & 22,000 & 25,000 \
\text { Building } & 28,000 & 30,000 \
\text { Land } & 40,000& 90,000
\end{array}$ Lee sells his stock to Katrina for $300,000.
a. Determine the tax consequences to Lee.
b. Detemune the tax consequences to Katrina.
c. Determine the tax consecuences to Vireo, Inc

Question

Lee owns all the stock of Vireo,Inc.,a C corporation for which he has an adjusted basis of $150,000.The assets of Vireo,Inc.,are as follows:
 $\begin{array}{lll}
&\text{Adusted Basys} &\text{FMV}\
\text { Cash } & \$ 35,000 &\$ 35,000\
\text { Accounts recerivable } & 20,000 & 20,000 \
\text { Inventory } & 22,000 & 25,000 \
\text { Building } & 28,000 & 30,000 \
\text { Land } &  40,000& 90,000
\end{array}$ Lee sells his stock to Katrina for $300,000.
 a. Determine the tax consequences to Lee.
b. Detemune the tax consequences to Katrina.
c. Determine the tax consecuences to Vireo, Inc

Quizplus · Accepted Answer

The Answer of Lee owns all the stock of Vireo,Inc.,a C corporation for which he has an adjusted basis of $150,000.The assets of Vireo,Inc.,are as follows:
 $\begin{array}{lll}
&\text{Adusted Basys} &\text{FMV}\
\text { Cash } & \$ 35,000 &\$ 35,000\
\text { Accounts recerivable } & 20,000 & 20,000 \
\text { Inventory } & 22,000 & 25,000 \
\text { Building } & 28,000 & 30,000 \
\text { Land } &  40,000& 90,000
\end{array}$ Lee sells his stock to Katrina for $300,000.
 a. Determine the tax consequences to Lee.
b. Detemune the tax consequences to Katrina.
c. Determine the tax consecuences to Vireo, Inc

Lee Owns All the Stock of Vireo,Inc Lee Sells His Stock to Katrina for $300,000