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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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