Ten years ago oreo corporation purchased all of the stock


Question - Ten years ago, Oreo Corporation purchased all of the stock of MilkDud Corporation for $800,000. In the current year, MilkDud Corporation is liquidated, and all of its assets (basis of $1,900,000; fair market value of $2.5 million) are distributed to Oreo Corporation. What are the tax consequences of this liquidation?

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Accounting Basics: Ten years ago oreo corporation purchased all of the stock
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