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:
$$\begin{array} { l l l }
\underline { \text { Asset } } & \underline { \text { FMV } } & \text { Adj. Basis } \
\text { Inventory } & \$ 20,000 & \$ 13,000 \
\text { Machines } & \$ 50,000 & \$ 60,000 \
\text { Building } & \$ 100,000 & \$ 75,000
\end{array}$$
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
E) None of the above

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:
$$\begin{array} { l l l } 
\underline { \text { Asset } } & \underline { \text { FMV } } & \text { Adj. Basis } \
\text { Inventory } & \$ 20,000 & \$ 13,000 \
\text { Machines } & \$ 50,000 & \$ 60,000 \
\text { Building } & \$ 100,000 & \$ 75,000
\end{array}$$
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
E) None of the above

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:
$$\begin{array} { l l l } 
\underline { \text { Asset } } & \underline { \text { FMV } } & \text { Adj. Basis } \
\text { Inventory } & \$ 20,000 & \$ 13,000 \
\text { Machines } & \$ 50,000 & \$ 60,000 \
\text { Building } & \$ 100,000 & \$ 75,000
\end{array}$$
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
E) None of the above

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