Goldie Corporation is equally owned by Amanda and Samuel. Amanda and Samuel have $45,000 and $26,000 adjusted bases, respectively, in their Goldie stock. The company makes liquidating distributions during the year as follows:
Amanda - $25,000 in cash in exchange for stock.
Samuel - Land with a $80,000 FMV, subject to a $25,000 mortgage, which he assumes, and $11,000 in cash in exchange for his stock.
Requirements
A. What are the amount and character of each shareholder's gain or loss?
B. What is each shareholder's basis for the property received in the liquidation?