How much gain did abc corporation recognize


ABC Corp distributed land to its sole shareholder, DEF Corp, in a liquidating distribution. At the time of the distribution, the land had a fair market value of $240,000 and ABC Corp's adjusted basis in the land was $200,000. The land was encumbered by a $250,000 mortgage. How much gain did ABC Corporation recognize as a result of the distribution?

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Accounting Basics: How much gain did abc corporation recognize
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