Brown Corporation purchased 90% of the stock of Green Corporation five years ago for $800,000.In the current year,Brown Corporation liquidates Green Corporation and acquires assets with a basis to Green Corporation of $900,000 (fair market value of $1.2 million).Brown Corporation will have a basis in the assets of $900,000,the same as Green's basis in the assets.

Question

Quizplus · Accepted Answer

Brown will have a basis in the assets equal to Green Corporation's basis,or $900,000.

Brown Corporation Purchased 90% of the Stock of Green Corporation