How much gain did big corporation recognize


Big Corporation distributed land to its sole shareholder, Little Corporation, in a liquidating distribution. At the time of the distribution, the land had a fair market value of $240,000 and Big Corporation's adjusted basis in the land was $200,000. The land was encumbered by a $250,000 mortgage. How much gain did Big Corporation recognize as a result of the distribution?

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Accounting Basics: How much gain did big corporation recognize
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