Ajax and Brindel Corporations have filed consolidated returns for several calendar years. Ajax acquires land for $60,000 on January 1 of last year. On September 1 of this year, Ajax sells the land to Brindel for $90,000. The basis and holding period for the land acquired by Brindel are:
D)none of the above

Question

Ajax and Brindel Corporations have filed consolidated returns for several calendar years. Ajax acquires land for $60,000 on January 1 of last year. On September 1 of this year, Ajax sells the land to Brindel for $90,000. The basis and holding period for the land acquired by Brindel are: 
D)none of the above

Quizplus · Accepted Answer

The basis for Brindel is the same as the basis for Ajax, which is $60,000. The holding period for Brindel starts on the date of the purchase from Ajax, which is September 1 of this year. Therefore, the correct choice is C.

Ajax and Brindel Corporations Have Filed Consolidated Returns for Several