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
4.What amount of gain will be recognized by Plumtree on the liquidating distribution of inventory to Michael?
4. (E) Although the liquidation qualifies as a Sec. 332 liquidation, nonrecognition of gain does not apply to distributions of appreciated property to shareholders other than the 80% distributee.
