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QUESTION 4 In the current year, Orion Corporation (E & P of S2 million) distributes a Corporation had purchased the land as an investment three years ago for $250,000, and the land was distributed subject to a S1 What is Allie's basis in the land? 10 points Save Anewer all of its property in a complete liquidation. Allic, a shareholder, receives land having a fair market value of $300,000. distributed subject to a $100,000 liability. Allie took the land subject to the $100,000 liability Orion O $200,000 O $250,000 O $50,000 O None of the above QUESTION5 10 points Save Answer Pursuant to a plan of corporate reorganization adopted in the current year, Cooper exchanged 1,500 shares of Hazelnut Corporation common stock which he had purchased for $200,000 for 2,200 shares of Macadamia Corporation common stock that have a fair market value of $475,000. As a result of the exchange, Cooper's recognized gain and his basis in the Macadamia stock are Recognized gain of $275,000 and basis of $475,000. O No recognized gain and basis of $200,000. O No recognized gain and basis of $475,000 O Recognined gain of $275,000 and basis of $200,000. O None of the above QUESTION 6 10 points Save Anawer Shareholders who receive cash distributions as a part of a corporate reorganization always treat the amount received as capital gains True O Fase

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