Casey Corporation has three assets when it decides to liquidate:
$\$ 400,000$ Book income
- 50,000 Insurance payment
+ 4,000 Insurance premium
- 10,000 Tax-exempt income
- 5,000 Excess bad-debt deduction
$+ \quad 5,000$ Excess book depreciation
$\$ 344,000$ Taxable income
The corporation sells the stock for its fair market value and distributes the other two assets to its sole shareholder. What is its tax liability on its final tax return if it had $45,000 of income from operations prior to liquidating?

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The Answer of Casey Corporation has three assets when it decides to liquidate:
$\$ 400,000$ Book income
- 50,000 Insurance payment
+ 4,000 Insurance premium
- 10,000 Tax-exempt income
- 5,000 Excess bad-debt deduction
$+ \quad 5,000$ Excess book depreciation
$\$ 344,000$ Taxable income
The corporation sells the stock for its fair market value and distributes the other two assets to its sole shareholder. What is its tax liability on its final tax return if it had $45,000 of income from operations prior to liquidating?

Casey Corporation Has Three Assets When It Decides to Liquidate $400,000\$ 400,000$400,000

Casey Corporation Has Three Assets When It Decides to Liquidate $\$ 400,000$