The stock of lavender corporation is held as follows: 80% by jade corporation (basis of $400,000) and 20% by tiffany (basis of $100,000). lavender corporation is liquidated in december of the current year, pursuant to a plan adopted earlier in the year. pursuant to the liquidation, lavender corporation distributed asset a (basis of $600,000, fair market value of $900,000) to jade, and asset b (basis of $250,000, fair market value of $225,000) to tiffany. no election is made under § 338. with respect to the liquidation of lavender: (a) lavender recognizes a loss of $25,000 on the distribution of asset b.(b) jade has a basis in asset a of $900,000.(c) tiffany has a basis in asset b of $225,000.(d) jade recognizes a gain of $500,000.(e) lavender recognizes a gain of $300,000 on the distribution of asset a.

Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."

Which feature is a characteristic of a corporation?