Reporting liquidating distributions

The examples are as follows: The stated purchase price for T's assets is ,500,000.In consideration for the sale, B makes a down payment of 0,000 and issues a 10-year installment obligation with a stated principal amount of ,000,000.Also assume that a semi-annual accrual period is used.Under ยง 1.1274-2, the issue price of the obligation on February 1, 1998, is ,368,450.The obligation provides for interest payments of 0,000 on January 31 of each year, with the total principal amount due at maturity.

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The basis of the stock on which liquidation distributions are paid is reduced by the amount of the distributions.

Report liquidation distributions on Schedule D, IRS Form 1040.

NEW YORK -- Shanghai Century Acquisition Corporation (the "Company") (AMEX: SHA, SHAWS, SHAU) announced today that the Company has set August 28, 2008 as the record date ("Record Date") for determining the public stockholders entitled to receive will be made to shareholders until final resolution of all matters, including potential indemnification claims related to the restatement of the Company's financial results for the first three quarters of 1998.

The provisions of this paragraph (a) are illustrated by the following examples.

Except as otherwise provided, assume in each example that A, an individual who is a calendar-year taxpayer, owns all of the stock of T corporation. On February 1, 1998, T, an accrual method taxpayer, adopts a plan of complete liquidation that satisfies section 453(h)(1)(A) and immediately sells all of its assets to unrelated B corporation in a single transaction.

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