An S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its sole shareholder. The tax results of the distribution will be Group of answer choices no gain recognized by the corp
An S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its sole shareholder. The tax results of the distribution will be Group of answer choices no gain recognized by the corp
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 16MCQ
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An S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its sole shareholder. The tax results of the distribution will be
Group of answer choices
no gain recognized by the corporation but $30,000 of gain recognized by the shareholder.
no gain to the corporation or to the shareholder.
$30,000 of gain recognized by the S corporation and no pass-through to the shareholder.
$30,000 of gain recognized by the S corporation which is passed through to the shareholder.
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