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Nuetrik [128]
3 years ago
7

Robot Corporation is liquidated, with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000. The pr

operty is subject to a $80,000 mortgage, which Marty assumes. Marty's basis in the Robot stock surrendered is $50,000. Marty must recognize
A) a $40,000 loss
B) no gain or loss
C) a $60,000 gain
None of the above
Business
1 answer:
mr_godi [17]3 years ago
6 0

Answer:

-$40,000

Explanation:

Data provided as the question

FMV = $90,000

Assumed Liability = $80,000

Stock basis = $50,000

The computation of recognize is shown below:-

= FMV of property - Assumed Liability - Stock basis

= $90,000 - $80,000 - $50,000

Recognize Loss = -$40,000

Therefore for computing the recognize loss we simply deduct the assumed liability and stock basis from FMV of property.

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3 years ago
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<h3>What do you mean by risk management strategy?</h3>

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