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The stock of Orange Corporation is held as follows: 90% by Purple Corporation and 10%...

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Accounting

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The stock of Orange Corporation is held as follows: 90% by Purple Corporation and 10% by Craig. In a liquidating distribution, Orange distributes property with a basis of $300,000 and a FMV of $280,000 to Craig. Even though there is a IRC 332 liquidation to Purple, since Craig is a minority shareholder, Orange can recognize the loss of $20,000 as a IRC 331 liquidation. True False A corporation takes out a loan to purchase State of Arkansas bonds. The interest on the loan will not impact either taxable income or current E \& P. True False

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