On June 1, 2007, Green Corp. adopted a plan of complete liquidation. The liquidation was completed within a twelve-month period. On August 1, 2007, Green distributed to its stockholders installment notes receivable that Green had acquired in connection with the sale of land in 2006. The following information pertains to these notes:
|
Green’s basis |
$ 90,000 |
|
Fair market value |
162,000 |
|
Face amount |
185,000 |
How much gain must Green recognize in 2007 as a result of this distribution?
- $0
- $23,000
- $72,000
- $95,000