For items 7 through 9 select the correct amount of tax basis that each shareholder will have for the property received in complete liquidation of Plumtree Corporation.An amount may be selected once, more than once, or not at all.
Selections
A.$0
E.$8,000
B.$3,500
F.$10,000
C.$5,000
G.$45,000
D.$7,000
H.$80,000
7.What will be the tax basis of the inventory received by Michael?
7. (F) Since the liquidating distribution was taxable as an exchange to Michael, his basis for the inventory received is equal to its fair market value.
