Chapter 20 Quiz - Taxation II Fall 2011 Chapter 20Take-Home...

Chapter 20 Quiz
Download Document
Showing pages : 1 of 3
This preview has blurred sections. Sign up to view the full version! View Full Document
Taxation II Fall 2011 Chapter 20Take-Home Quiz Student:_______________________________________________________________________ 1. Shareholders who receive cash distributions as a part of a corporate reorganization always treat the amount received as capital gains. a. True b. False 2. The stock in Palm Corporation is held equally by two brothers. One year before its liquidation, the shareholders transfer property (basis of $350,000, fair market value of $200,000) to Palm Corporation in return for stock. In a current year liquidation, Palm Corporation transfers the property (now worth $150,000) pro rata to the brothers. What amount of loss will Palm Corporation recognize on the distribution? a. $0 b. $50,000 c. $150,000 d. $200,000 e. None of the above 3. Fir Corporation distributes all of its property in a complete liquidation. Debbie, a shareholder, receives $8,000 cash and securities having a fair market value of $32,000. The securities had been acquired three years ago by Fir as an investment for $24,000. Debbie has a $38,000 basis in her Fir stock. What is Debbie's basis in the securities received in the liquidation of Fir? a. $32,000 b. $38,000 c. $24,000 d. $0 e. None of the above 4. During the current year, Neptune Corporation is liquidated and distributes its only asset,
Background image of page 1
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Create a FREE account now to get started. Log In

The email address you entered is not valid. The email address you provided is already in use.
Your username must be at least 5 characters. Your username must consist of only alphanumeric characters. Your username must contain at least one letter. Your username contains inappropriate language. Another user has already claimed this username.
Your password must be at least 6 characters in length.
{[ $select.selected.label ]} Please select a valid school.
By creating an account you agree to our Privacy Policy, Terms of Use, and Honor Code.
Create my FREE account Processing...
Sign Up with Facebook

We will never post anything without your permission.

Already on Course Hero? Log In