Neil purchased land from Spring Harbor, his 100%-owned corporation, for $275,000. The corporation purchased the land three

Question:

Neil purchased land from Spring Harbor, his 100%-owned for $275,000. The purchased the land three years ago for $300,000. Similar tracts of land located nearby have sold for $400,000 in recent months. What tax issues should be considered with respect to the corporation’s sale of the land?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...