On January 1, Year 1, Can Corporation distributed Sec. 1231 land with a market value of $300,000 and an adjusted basis of $205,000 under a plan of partial liquidation under the Sec. 302(b)(4) rules. The distribution was made to individual shareholder Clem, who had owned 40% of Can since it was founded. Clem’s stock interest redeemed in the partial liquidation had a basis of $140,000. What are the amount and the character of gain/loss that Can should recognize on the distribution?

1231 gain of $95,000

Explanation:

Calculation to determine the amount and the character of gain/loss that Can should recognize on the distribution

Using this formula

Amount of gain/loss =Market value of land -Adjusted basis

Let plug in the formula

Amount of gain/loss= ($300,000 - $205,000).

Amount of gain/loss=1231 gain of $95,000

Therefore the amount and the character of gain/loss that Can should recognize on the distribution will be 1231 gain of the amount of $95,000

yup the answer is

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi