Brooks Corporation distributes property with a basis of $20,000 and a fair market value of $25,000 to Caroline in complete liquidation of the corporation. Caroline's basis in the stock is $32,000 . What must Caroline and Brooks report as income (loss) upon the liquidation of Brooks?
Caroline Brooks
a. $(12,000) $(7,000)
b. $(12,000) $5,000
c. $(12,000) $-0-
d. $(7,000) $5,000
d
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Answer the following statement true (T) or false (F)
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Answer the following statement true (T) or false (F)
Simulation
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