Assume Tiffany owns 40% of the ROF stock and Carlos owns 60%. Tiffany will receive $160,000 in the liquidation & Carlos will receive the land & building plus $40,000.
What amount of gain or loss does ROF recognize in the complete liquidation? What amount of gain or loss does Carlos recognize in the complete liquidation? Given: FMV Tax Adjusted Basis Appreciation Cash $200,000 $200,000 Building 50,000 10,000 $40,000 Land 150,000 200,000 (50,000) Total $400,000 $410,000 $(10,000).