Unformatted text preview: $180,000 (d) Teal Taxable Gain = FMV – Basis = 250,000 – 180,000 = $70,000 Grace Basis in Property = 250,000 Grace Corporation Capital Gain = FMV – Basis in Stock = 250,000 – 70,000 = $180,000 (e) Teal Corporation would be fine with any option because they are all the same. Grace would want to choose (c) because of the quantifying stock redemption (which she would receive as an individual, rather than as a corporation). She will have a gain of $180,000....
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- Spring '12
- Capitalism, grace, Grace Corporation Capital Gain, Teal Taxable Gain