During the year, P&B Construction Corp.distributed a crane used in its business to S, who owns 100 percent of the stock.The crane was worth $10,000 and had a basis of $19,000.The corporation also distributed land worth $70,000 (basis $40,000).Assuming P&B has substantial earnings and profits, the corporation will report A)No gain or loss B)$30,000 gain C)$9,000 loss D)$21,000 gain E)None of the above

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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During the year, P&B Construction Corp.distributed a crane used in its business to S, who owns 100 percent of the stock.The crane was worth $10,000 and had a basis of $19,000.The corporation also distributed land worth $70,000 (basis $40,000).Assuming P&B has substantial earnings and profits, the corporation will report

A)No gain or loss

B)$30,000 gain

C)$9,000 loss

D)$21,000 gain

E)None of the above

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