$300,000 $100,000 $200,000 O None of the above. QUESTION8 Fir Corporation distri

Question

$300,000 $100,000 $200,000 O None of the above. QUESTION8 Fir Corporation distributes all of its property in a complete liquidation. Debbie, a shareholder, receives $8.000 cash and securities having a fair market value of $32,000. The securities had been acquired three years ago by Fir as an investment for $24,000. Debbie has a $38,000 basis in her Fir stock. What is Debbie's basis in the securities received in the liquidation of Fir? $32,000 $38,000 $24,000 None of the above. QUESTION 9 Click Save and Submit to save and submit. Click Save All Answers to save all onswers Save All AnswersC 6 Appts S. 3 Appts 3 Appts O Ask me anything

Explanation / Answer

Answer is option C $24,000

Adjusted basis of securities = 24000

Fair market value of securities = 32000

Therefore Debbie's basis in the securities received in the liquidation of Fir is $24,000.

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