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Friendly corporation distributes property with a basis of $175,000 and fair market value of $200,000 in a distribution that is a qualifying stock…
Friendly corporation distributes property with a basis of $175,000 and fair market value of $200,000 in a distribution that is a qualifying stock redemption. The property is subject to a liability of $150,000 which the shareholder assumes. The basis of the property to the shareholder is:
- $0
- $25,000
- $50,000
- $200,000
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