The stock of Hill Corp. is 60 percent owned by Joe and 40 percent owned by Joe's brother, Bob.

The stock of Hill Corp. is 60 percent owned by Joe and 40 percent owned by Joe’s brother, Bob. During 2010, Bob transferred land (with a basis to Bob of $300,000 and a fair market value of $320,000) as a contribution to capital to Hill Corp. During March 2011, Hill Corp. adopted a plan of liquidation and subsequently made a pro rata distribution of the land back to the brothers. At the time of the liquidating distribution, the land had a fair market value of $160,000. What amount of loss can be recognized by Hill Corp. on the distribution of land?

Question:The stock of Hill Corp. is 60 percent owned by Joe and 40 percent owned by Joe’s brother, Bob. During 2010, Bobtransferred land (with a basis to Bob of $300,000 and a fair market value...