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1. A liquidation must be reported to the Internal Revenue Service on Form 966 A within...

1. A liquidation must be reported to the Internal Revenue Service on Form 966

A within 60 days of the adoption of a plan of liquidation.

B) that is filed with the national IRS office.

C) whether the shareholders' realized gain is recognized or not.

D) by the shareholders.

2.

Breezy Corporation is owned 75% by Leticia and 25% by LaShawn. Breezy Corporation owns Cloud Corporation stock with a $45,000 adjusted basis and a $25,000 FMV. The stock is not disqualified property. As part of a complete liquidation, the Cloud Corporation stock is distributed to LaShawn. LaShawn's basis in her Breezy stock is $35,000. Breezy Corporation will recognize

A) none of the above.

B) a $15,000 loss.

C) a $25,000 gain.

D) no loss.

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