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distribution from the S corporation. What is Frank's basis at the
end of the tax year?
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ACCT 553 Week 7 Homework
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Chapters 10-11-12
1. Please explain the distinction between a "realized" gain and a
"recognized" gain. (5 pts)
2. Are there any limits to the deductibility of losses on sales and
exchanges between related parties? What code section defines this
limitation? (5 pts.)
3. What is the basis of property received (i.e. new property) in a
like-kind exchange? What is the holding period for the new asset?
(5 pts.)
4. David purchased stock in Zoll Corporation in 1985 for $6,000.
On April 16, 2013 he gifted the stock to his daughter Susan; at the
time of the gift, the Zoll stock was valued at $250,000. Susan sold
the stock the next month for $ 252,000. What is Susan's gain or
loss and what is the character of the gain or loss? ( 5 pts.)