Acorporation distributes a piece of personal property to a shareholder, in complete liquidation. the corporation had a basis of $40,000. the property's fmv is $30,000. the effect to the corporation

The corporation must recognize a $10,000 loss.

Explanation:

The last activity that a corporation must perform upon liquidation is to distribute property, assets or cash to its shareholders. The adjusted basis for any property or assets handed out in a complete liquidation is the fair market value of the property or assets.

In this case, the corporation's property had a basis of $40,000 but a fair market value of $30,000, so the distribution was done using the fair market value of $30,000.

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

answer; standing committee;