X co adopts a plan of complete liquidation and makes the


X Co. adopts a plan of complete liquidation and makes the following pro rata distributions to its shareholders (assume all are individuals):

A Cash: $70,000;

B Inventory: FMV-$20,000 Basis-$20,000 Mortgage-$10,000;

C Inventory: FMV-$30,000 Basis-$15,000 Mortgage-$40,000;

D Capital Asset: FMV-$500 Basis-$2,800;

(Assume that X Co. acquired the property distributed to D in a Sec. 351 transfer 6 months before adopting the plan of liquidation when the FMV of the property was $800 and X Co.'s basis was $2,800).

E Capital Asset: FMV-$10,000 Basis-$4,000.

Each shareholder had a $1,000 basis in the X Co. stock.

X Co.'s recognized gain or loss on the distribution to:

A is ?

B is?

C is ?

D is ?

E is ?

The Gain or Loss recognized by:

A is ?

B is?

C is ?

D is ?

E is ?

C's basis in the property received is ?

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Accounting Basics: X co adopts a plan of complete liquidation and makes the
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