Green had a basis of 220000 in the land what are the tax


Question - Orange Corporation purchased purchased bonds (basis of $185,000) of its wholly owned subsidiary, Green Corporation, at a premium. Upon liquidation of Green pursuant to section 332, Orange receives payment in the form of land worth $200,000, the face amount of the bonds. Green had a basis of $220,000 in the land. What are the tax consequences of this land transfer to Green Corporation and to Orange Corporation?

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Accounting Basics: Green had a basis of 220000 in the land what are the tax
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