Prime Corporation liquidates its 85% own subsidiary, Bass Corporation, under the provisions of Se…

Prime Corporation liquidates its 85% own subsidiary, Bass Corporation, under the provisions of Sec. 332 and 337. Bass Corporation distributes land to its minority shareholder, John, who owns 15% interest. The property received by John has a $55,000 FMV. The land was used in the Bass Corporation’s business and has a $65,000 adjusted basis and is subject to a $10,000 liability which is assumed by John. John’s basis of stock is $25,000. How will Prime Corporation determine the cost basis of the assets it recieves from Bass Corporation?

"We Offer Paper Writing Services on all Disciplines, Make an Order Now and we will be Glad to Help"