Martin is a shareholder of Sand Pine Corp. After adopting a…
Questions
Mаrtin is а shаrehоlder оf Sand Pine Cоrp. After adopting a plan of liquidation, Sand Pine makes a liquidating distribution to Martin of land with a fair value of $100,000 and an adjusted basis (to Sand Pine) of $80,000. Martin's basis in the Sand Pine stock was $50,000 before the distribution. [question 2 of 2] What amount of gain does Sand Pine recognize on the liquidating distribution?