25 Part 4 of 4 3.44 points Required information Problem 22-72 (LO 22-5) (Algo) [The following information applies to the questions displayed below.] Check my work 02:36:32 Carolina Corporation, an S corporation, has no corporate Earnings and profit from its years as a C corporation. At the end of the year, it distributes a small parcel of land to its sole shareholder, Shadiya. The fair market value of the parcel is $105,000, and its tax basis is $65,000. Shadiya's basis in her stock is $26,500. Assume Carolina Corporation reported $0 taxable income before considering the tax consequences of the distribution. Note: Leave no answer blank. Enter zero if applicable. Skipped eBook Print References Problem 22-72 Part d (Algo) d. Assume the fair market value of the land is $45,000 rather than $105,000. How much gain must Shadiya recognize (if any) as a result of the distribution, what is her basis in her Carolina Corporation stock after the distribution, and what is her basis in the land? Gain recognized Stock basis Land basis
25 Part 4 of 4 3.44 points Required information Problem 22-72 (LO 22-5) (Algo) [The following information applies to the questions displayed below.] Check my work 02:36:32 Carolina Corporation, an S corporation, has no corporate Earnings and profit from its years as a C corporation. At the end of the year, it distributes a small parcel of land to its sole shareholder, Shadiya. The fair market value of the parcel is $105,000, and its tax basis is $65,000. Shadiya's basis in her stock is $26,500. Assume Carolina Corporation reported $0 taxable income before considering the tax consequences of the distribution. Note: Leave no answer blank. Enter zero if applicable. Skipped eBook Print References Problem 22-72 Part d (Algo) d. Assume the fair market value of the land is $45,000 rather than $105,000. How much gain must Shadiya recognize (if any) as a result of the distribution, what is her basis in her Carolina Corporation stock after the distribution, and what is her basis in the land? Gain recognized Stock basis Land basis
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![25
Part 4 of 4
3.44
points
Required information
Problem 22-72 (LO 22-5) (Algo)
[The following information applies to the questions displayed below.]
Check my work
02:36:32
Carolina Corporation, an S corporation, has no corporate Earnings and profit from its years as a C
corporation. At the end of the year, it distributes a small parcel of land to its sole shareholder, Shadiya.
The fair market value of the parcel is $105,000, and its tax basis is $65,000. Shadiya's basis in her stock
is $26,500. Assume Carolina Corporation reported $0 taxable income before considering the tax
consequences of the distribution.
Note: Leave no answer blank. Enter zero if applicable.
Skipped
eBook
Print
References
Problem 22-72 Part d (Algo)
d. Assume the fair market value of the land is $45,000 rather than $105,000. How much gain must Shadiya recognize (if
any) as a result of the distribution, what is her basis in her Carolina Corporation stock after the distribution, and what is her
basis in the land?
Gain recognized
Stock basis
Land basis](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f15d03b-186e-43dc-a209-61ca055b81ff%2Fa22eddae-fff2-4faf-aac5-b0e9adf9e6d3%2Fuop8jyp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:25
Part 4 of 4
3.44
points
Required information
Problem 22-72 (LO 22-5) (Algo)
[The following information applies to the questions displayed below.]
Check my work
02:36:32
Carolina Corporation, an S corporation, has no corporate Earnings and profit from its years as a C
corporation. At the end of the year, it distributes a small parcel of land to its sole shareholder, Shadiya.
The fair market value of the parcel is $105,000, and its tax basis is $65,000. Shadiya's basis in her stock
is $26,500. Assume Carolina Corporation reported $0 taxable income before considering the tax
consequences of the distribution.
Note: Leave no answer blank. Enter zero if applicable.
Skipped
eBook
Print
References
Problem 22-72 Part d (Algo)
d. Assume the fair market value of the land is $45,000 rather than $105,000. How much gain must Shadiya recognize (if
any) as a result of the distribution, what is her basis in her Carolina Corporation stock after the distribution, and what is her
basis in the land?
Gain recognized
Stock basis
Land basis
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