For items 4 through 6 select the correct amount of gain or loss recognized by Plumtree Corporation on the liquidating distributions of property to shareholders. An amount may be selected once, more than once, or not at all.
Selections
A.$0
D.$5,000
B.$2,000
E.$6,500
C.$3,000
F.$35,000
6.What amount of gain will be recognized by Plumtree on the liquidation distribution of land to Oak Corporation?
6. (A) Since the liquidation qualifies as a Sec. 332 liquidation, no gain or loss is recognized by the liquidating corporation on distributions made to its parent corporation (i.e., the 80% distributee).
