Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis  of $30,000; fair market value of $40,000) that is subject to a $7,000 liability which Bonnie assumes. Puffin has no  accumulated E & P and $70,000 of current E & P from other sources during the year. How much dividend should Bonnie  report?  a. $4,000 b. $33,000 c. $10,000 d. $34,000 e. None of the above   Please show work.

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.