14. On a nonliquidating distribution of appreciated property, the shareholder will realize a return of basis when: A. The fair market value of the distributed property is a dividend covered by the corporation's earnings and profits. B. The basis of the distributed property is a dividend covered by the corporation's earnings and profits.. C. The fair market value of the distributed property exceeds the corporation's earnings and profits. D. 15. The basis of the distributed property exceeds the corporation's eamings and profits. On a nonliquidating distribution of depreciated property, the shareholder will realize a return of basis when: A. The fair market value of the distributed property is a dividend covered by the corporation's earnings and profits. B. The basis of the distributed property is a dividend covered by the corporation's earnings and profits. C._ The fair market value of the distributed property exceeds the corporation's earnings and profits. D. _ The basis of the distributed property exceeds the corporation's earnings and profits. 16. Corporations wishing to recognize loss on a nonliquidating distribution of depreciated property should: A. _ Sell the property to a shareholder who owns more than 50% of the company stock. B. _ Distribute the property to a shareholder "in respect of its stock". C._ Distribute the property subject to a mortgage. D. Sell the property to a third party who resells it to a shareholder in an unrelated transaction.