Malcolm receives a liquidating distribution of land with a fair market value of $14,000 and a basis of $19,000 from Blithe Corporation,an S corporation.Malcolm's basis in the stock is $21,000.What must Malcolm and Blithe report as income (loss)from the property distribution?
$ \begin{array}{ll}&\text { Malcolm } & \text { Blithe } \ \text { a. } &\$-0- & \$-0-
\b.&\$2,000&\$5,000\c.&\$7,000&\$-0-\d.&\$7,000&5,000
\end{array} $

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The Answer of Malcolm receives a liquidating distribution of land with a fair market value of $14,000 and a basis of $19,000 from Blithe Corporation,an S corporation.Malcolm's basis in the stock is $21,000.What must Malcolm and Blithe report as income (loss)from the property distribution?
$ \begin{array}{ll}&\text { Malcolm } & \text { Blithe } \ \text { a. } &\$-0- & \$-0-
\b.&\$2,000&\$5,000\c.&\$7,000&\$-0-\d.&\$7,000&5,000
\end{array} $

Malcolm Receives a Liquidating Distribution of Land with a Fair