CPA-02027 ARE R97 # 7 Page 43 Mintee Corp . , an accrual basis calendar-year C corporation , had no corporate shareholders when it liquidated in 1996...
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13.

CPA-02027 ARE R97 #7 Page 43 Mintee Corp., an accrual basis calendar-year C corporation, had no corporate shareholders when

it liquidated in 1996. In cancellation of all their Mintee stock, each Mintee shareholder received in 1996, a liquidating distribution of $2,000 cash and land with tax basis of $5,000 and a fair market value of $10,500. Before the distribution, each shareholder's tax basis in Mintee stock was $6,500. What amount of gain should each Mintee shareholder recognize on the liquidating distribution? a. $0 b. $500 c. $4,000 d. $6,000
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