A corporation distributes land (fair market value (FMV), $60,000; basis, $45,000) to a shareholder. As a result
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A corporation distributes land (fair market value (FMV), $60,000; basis, $45,000) to a shareholder. As a result of the distribution, the corporation:
a. recognizes $15,000 gain and distributes the land at its $60,000 FMV.
b. recognizes $15,000 gain and distributes the land at its $45,000 basis.
c. recognizes no gain or loss and distributes the land at its $60,000 FMV.
d. recognizes no gain or loss and distributes the land at its $45,000 basis.
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Related Book For 
Essentials Of Federal Income Taxation For Individuals And Business
ISBN: 9780808038009
15th Edition
Authors: Linda M. Johnson
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