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Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder Mark Ingram. The fair market value of the parcel is $62,750 and its tax basis is $39,000. Mark's basis in his stock is $31,750. a. What amount of gain or loss, if any, does Alabama Corporation recognize on the distribution? b. How much gain must Mark recognize (if any) as a result of the distribution and what is his basis in the land? c. Assume the fair market value of land is $27,500 rather than $62,750. How much gain or loss (if any) does Alabama Corporation recognize on the distribution? d. Assume the fair market value of land is $27,500 rather than $62,750. How much gain must Mark recognize (if any) as a result of the distribution and what is his basis in the land?
Sagot :
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