Ark. Code R. 26-51-404 - 12(a)(1) (1997) - Cost Basis of Divided Tract of Land

When a corporation is dissolved, its affairs are usually settled by a receiver or trustee in dissolution. The corporate existence is continued for the purpose of liquidating the assets and paying the debts, and the receiver or trustee may act for the corporation for such purposes. Any sale of property by them is to be treated as if made by the corporation for the purpose of ascertaining the gain or loss. No gain or loss is realized by a corporation from the distribution of its assets in a partial or complete liquidation, even though the assets may have appreciated or depreciated in value since their acquisition.