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Harrizon [31]
3 years ago
11

Krol Corporation distributed marketable securities in redemption of its stock in a complete liquidation. On the date of distribu

tion, these securities had a basis of $100,000 and a fair market value of $150,000. What gain does Krol have as a result of the distribution?
Business
1 answer:
Varvara68 [4.7K]3 years ago
8 0

Answer:

The answer is 50.000 dollars

Explanation:

When a corporation completely liquidates, the corporation wil recognize a gain or loss as if the property were sold at fair market value.

Amount realizes as if sold $150,000

Less: Adjusted basis $ 100,000.

Equals: $50,000, which is the recognized capital gain.

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Dividing tasks between employees always eliminates the possibility of collusion, but this is wrong.

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Separation of duties is an important practice to reduce the occurrence of errors and fraud by ensuring that employees do not have the opportunity to commit or conceal errors or fraud in the performance of their duties. That is internal control.

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8 0
3 years ago
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