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What gain does S recognize on distribution of building

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    Assignment ID: FG133051110

    Question – P Corp owns 100% of S Corp. S Corp is liquidated into P Corp. Its sole asset – a building with a cost basis of 100,000 and a FMV of 1 million – was distributed to S Corp as part of the plan of liquidation. S had acquired the building 3 years ago, on 11/13/18.

    What gain does S recognize here on the distribution of the building?

    What is P’s basis in the building?

    When does P’s holding period begin?

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