Pop Corp owns 850 shares of stock in Small Corp, which represents 85% in Small...
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Accounting
Pop Corp owns shares of stock in Small Corp, which represents in Small Corp. The value of the shares of stock is $ Pop Corps basis in the shares of stock $ An unrelated individual, David, owns the remaining shares of stock in Small Corp value $; basis $
At the end of Small Corp was liquidated and the assets of Small Corp were distributed to its shareholders. At the end of Small Corp had earnings & profits of $ Pop Corp had earnings & profits of $ At the time of the liquidation, Small Corp had the following assets:
Basis Value
Cash $ $
Real Property $ $
Total $ $
Small Corp distributed the inventory and cash pro rata to Pop Corp and David: i of inventory and $ cash Pop Corp, and ii of inventory and $ cash to David. What is the amount of gain that Pop Corp is required to recognize?
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