Mario receives a liquidating distribution of land with a fair market value of $19,000 and a basis of $15,000 from Blithe Corporation,an S corporation.Mario's basis in the stock is $21,000.What must Mario and Blithe report as income (loss)from the property distribution?

Mario Blithe
A)$-0- $-0-
B)$(2,000)$4,000
C)$(6,000)$-0-
D)$(6,000)$4,000

Question

Mario receives a liquidating distribution of land with a fair market value of $19,000 and a basis of $15,000 from Blithe Corporation,an S corporation.Mario's basis in the stock is $21,000.What must Mario and Blithe report as income (loss)from the property distribution?
​
Mario Blithe
A)$-0- $-0-
B)$(2,000)$4,000
C)$(6,000)$-0-
D)$(6,000)$4,000

Quizplus · Accepted Answer

The Answer of Mario receives a liquidating distribution of land with a fair market value of $19,000 and a basis of $15,000 from Blithe Corporation,an S corporation.Mario's basis in the stock is $21,000.What must Mario and Blithe report as income (loss)from the property distribution?
​
Mario Blithe
A)$-0- $-0-
B)$(2,000)$4,000
C)$(6,000)$-0-
D)$(6,000)$4,000

Mario Receives a Liquidating Distribution of Land with a Fair