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Business, 26.09.2019 23:00 gloverj9639

General inertia corporation made a pro rata distribution of $50,000 to tiara, inc. in partial liquidation of the company on december 31, 20x3. tiara, inc. owns 500 shares (50%) of general inertia. the distribution was in exchange for 250 shares of tiara's stock in the company. after the partial liquidation, tiara continued to own 50% of the remaining stock in general inertia. at the time of the distribution, the shares had a fair market value of $200 per share. tiara's income tax basis in the shares was $100 per share. general inertia had total e& p of $800,000 at the time of the distribution. what amount of dividend or capital gain does tiara recognize because of the transaction?

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