Ivory Corporation (E & P of $1 million)has 2,000 shares of common stock outstanding owned by unrelated parties as follows: Veronica,1,000 shares,and Tommie,1,000 shares.Veronica and Tommie each paid $150 per share for the Ivory stock 12 years ago.In May of the current year,Ivory distributes land held as an investment (basis of $180,000,fair market value of $390,000)to Veronica in redemption of 350 of her shares.

Question

Quizplus · Accepted Answer

The Answer of Ivory Corporation (E & P of $1 million)has 2,000 shares of common stock outstanding owned by unrelated parties as follows: Veronica,1,000 shares,and Tommie,1,000 shares.Veronica and Tommie each paid $150 per share for the Ivory stock 12 years ago.In May of the current year,Ivory distributes land held as an investment (basis of $180,000,fair market value of $390,000)to Veronica in redemption of 350 of her shares.

Ivory Corporation (E & P of $1 Million)has 2,000 Shares