Pursuant to a liquidation, Coral Corporation distributes to Lucinda, a shareholder, land (basis of $90,000, fair market value of $200,000). The land is subject to a $75,000 liability. Lucinda will have a basis of $125,000 in the land
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The basis of property received in a liquidation is the property's fair market value on the date of the distribution, or $200,000.
Business
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