What are the tax consequences to keith including the basis


Question - During the current year, White Corporation is liquidated and distributes its only asset, land, to Keith, the sole shareholder. On the date of distribution, the land has a basis of $250,000, a fair market value of $650,000, and is subject to a liability of $500,000. Keith, who takes the land subject to the liability, has a basis of $120,000 in the White stock. What are the tax consequences to Keith, including the basis of the land he receives, and the tax consequences to White?

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