Under a plan of complete liquidation, Key Corporation distributes land (not a disqualified property) with an adjusted basis of $410,000 and an FMV of $300,000 for all Sharon's stock. Sharon's basis in her 5% interest in the Key stock is $250,000. Find Sharon's basis in the land and Key Corporation's recognized gain or loss.

$300,000 and ($110,000)

Explanation:

Under a plan of complete liquidation, Key Corporation distributes land (not a disqualified property) with an adjusted basis of $410,000 and an FMV of $300,000 for all Sharon's stock.

Sharon's basis in her 5% interest in the Key stock is $250,000.

Therefore Sharon's basis in the land will be the fair market value at the date of transfer which is $300,000

and

Key Corporation's recognized gain or loss on disposal will be the carrying value/adjusted basis less the market value which is the deemed sale value

$410,000 - $300,000 = ($110,000) it is a loss since it is disposed for less than its value

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total