18. X Corporation distributes property fair market value ("FMV") $100, adjusted basis ("AB") $50 subject to a liability of $110. X will recognize $60 gain as a result of the transaction a. True b. False Multiple Choice Indicate the answer choice that best completes the statement or answers the question. 19. Rose Corporation (a calendar year taxpayer) has taxable income of $300,000, and its financial records reflect the following for the year. Federal income taxes paid Capital loss carryforward deducted currently Gain recognized this year on an installment sale from a prior year Depreciation deducted on tax return (ADS "Straight-Line" depreciation was used) Interest income on Iowa state ("municipal") bonds $110,000 60,000 44,000 40,000 8,000 Rose Corporation's current E & Pis: a. $254,000. b. $214,000. c. $194,000. d. $104,000