Problem:
Manny owns 30% of the Cougar Company for which his basis is $160,000. He sells one-half of his ownership interest to Donald for $180,000. Which of the following statements is correct? Group of answer choices If Cougar is a C corporation, Manny has a recognized capital gain of $100,000. If Cougar is an S corporation, Manny has a recognized gain of $100,000, some of which may be capital and some of which may be ordinary income. If Cougar is a partnership, Manny has a recognized capital gain of $100,000 regardless of the type of assets owned by the partnership at the time of the sale. If Cougar is a partnership, Manny has a recognized capital gain of $160,000