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Business, 31.10.2019 04:31 livy151515

Parent corporation owns 100% of the single class of stock of subsidiary corporation. parent's basis in the subsidiary stock is $500,000 when parent completely liquidates subsidiary corporation within a single tax year. the subsidiary corporation assets have a $700,000 adjusted basis and an $800,000 fmv at liquidation. as a result of the liquidation, parent must recognize a
a) $300,000 gain.
b) $0 gain.
c) $200,000 gain.
d) none of the above1.

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Parent corporation owns 100% of the single class of stock of subsidiary corporation. parent's basis...
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