Basis of the property to the shareholder


Finch Corporation dishibutes property (basis of $140,000, fair market value of $200,000) to a shareholder in a distribution that is a qualifying stock redemption. The property is subject to a liability of $90,000, which the shareholder assumes. The basis of the property to the shareholder is:

a. $0.

b. $50,000.

c. $110,000.

d. $140,000.

e. None of the above.

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Accounting Basics: Basis of the property to the shareholder
Reference No:- TGS057681

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