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xz_007 [3.2K]
3 years ago
14

Good, a C corporation, sells an automobile to its sole shareholder for $4,500. Good's adjusted basis in the automobile is $12,00

0, and the fair market value is $5,000. What is the amount of loss that is recognized by Good
Business
1 answer:
Fiesta28 [93]3 years ago
3 0

Answer:

$0

Explanation:

The computation of the amount of loss is shown below:

Generally taxpayers does not subtracted the losses on sales of property that can be with the related parties

And, in the case when a corporation and the shareholder who owns more than 50% of that one corporation so it to be considered as the relevant parties

Therefore the amount is zero

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