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the land has decreased to $500,000. What is the effect of each of the
following on Pink Corporation? Which option should be selected?
Justify.
Situation 2
At the time of its liquidation under §332, Pink Corporation (earnings
and Profits of $560,000) had the following assets and liabilities: cash
($175,000), marketable securities (fair market value of $230,000 basis
of $250,000), unimproved land (fair market value $600,000 basis of
$300,000), unsecured note payable ($50,000), and mortgage on the
unimproved land ($270,000). Pink Corporation also had a net
operating loss carryover of $45,000. Wren Corporation acquired all of
the stock of Pink Corporation seven years ago $160,000.
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ACC 4020 Week 4 Assignment 3 Distributions
and Liquidation
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