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: $\begin{array} { l l l }
\underline{\text { Asset }} &\underline{ \text { FMV } } & \underline{\text { Adj. Basis }} \
\text { Inventary } & \$ 20,000 & \$ 13,000 \
\text { Machines } & \$ 50,000 & \$ 60,000 \
\text { Building } & \$ 100,000 & \$ 75,000
\end{array}$ 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: $\begin{array} { l l l } 
\underline{\text { Asset }} &\underline{ \text { FMV } }  & \underline{\text { Adj. Basis }} \
\text { Inventary } & \$ 20,000 & \$ 13,000 \
\text { Machines } & \$ 50,000 & \$ 60,000 \
\text { Building } & \$ 100,000 & \$ 75,000
\end{array}$ 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

The Answer of 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: $\begin{array} { l l l } 
\underline{\text { Asset }} &\underline{ \text { FMV } }  & \underline{\text { Adj. Basis }} \
\text { Inventary } & \$ 20,000 & \$ 13,000 \
\text { Machines } & \$ 50,000 & \$ 60,000 \
\text { Building } & \$ 100,000 & \$ 75,000
\end{array}$ 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

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