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1. Explain the tax effect to the corporation and to the sole shareholder. XYZ Corporation has one shareholder. The shareholders tax basis in his shares
1. Explain the tax effect to the corporation and to the sole shareholder.
XYZ Corporation has one shareholder. The shareholders tax basis in his shares is $60,000. Corporate E&P BEFORE the effects of any distribution is $10,000. The corporation distributes the following property: The cororation distributes land with FMV of $120,000 and a tax basis to the corporation of $70,000.
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