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“The stock in Black Corporation is owned by Sam and Susan, who are unrelated. Sam owns 60% and Susan owns 40% of the stock in Black Corporation. All of Black Corporation’s assets were acquired by purchase. The following assets are to be distributed in complete liquidation of Black Corporation:Adjusted Fair MarketBasis ValueCash $200,000 $200,000Inventory 165,000 150,000Equipment 210,000 250,000Land 430,000 400,000a. What gain or loss would Black Corporation recognize if it distributes the cash, inventory, and equipment to Sam and the land to Susan?b. What gain or loss would Black Corporation recognize if it distributes the cash and land to Sam and the inventory and equipment to Susan?” – Sent to Accounting Expert Tutor on 5/7/2010 at 8:34am
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