1. May is the sole shareholder in Flea, inc,. an S corporation. at a time when her stock basis in Flea is $30,000, the corporation distributes appreciated property worth $100,000 to May

Flea's basis in the property is $30,000(there is no built-in gain at the effective date of the S election) May's taxable gain is:

a. $100,000

b.70,000

c.0

d.$30,000