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? $\begin{array}{llcc}
\text { Malcolm } & \text { Blithe } \
\end{array}$
A) $\$-0- \quad \$-0-$
B) $ \$(2,000) \quad \$(5,000) $
C)$ \$(7,000) \quad \$-0- $
D)$ \$(7,000) \quad \$(5,000) $ ?

Question

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? $\begin{array}{llcc}
  \text { Malcolm } &  \text { Blithe } \
\end{array}$
A) $\$-0- \quad \$-0-$
B) $ \$(2,000) \quad  \$(5,000) $
C)$ \$(7,000) \quad \$-0- $
D)$ \$(7,000) \quad \$(5,000) $ ?

Quizplus · Accepted Answer

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? $\begin{array}{llcc}
  \text { Malcolm } &  \text { Blithe } \
\end{array}$
A) $\$-0- \quad \$-0-$
B) $ \$(2,000) \quad  \$(5,000) $
C)$ \$(7,000) \quad \$-0- $
D)$ \$(7,000) \quad \$(5,000) $ ?

Malcolm Receives a Liquidating Distribution of Land with a Fair Malcolm Blithe \begin{array}{llcc} \text { Malcolm } & \text { Blithe } \\\end{array} Malcolm ​ Blithe ​

Malcolm Receives a Liquidating Distribution of Land with a Fair $\begin{array}{llcc} \text { Malcolm } & \text { Blithe } \\\end{array}$