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ACC 4020 Week 4 Assignment 2 Pink
Corporation
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Situation 1
Pink Corporation acquired land and securities in a §351 tax-free
exchange in 2011. on the date of transfer, the land had a basis of
$720,000 and a fair market value of $1 million, and the securities had
a basis of $110,000 and a fair market value of $250,000. Pink
Corporation has two shareholders, Maria and Paul, who are unrelated.
Maria owns 85% of the stock in the corporation, and Paul owns 15%.
Pink adopts a plan of liquidation in 2012. On this date, the value of