Question
1.Brett owns stock in Oriole Corporation (basis of $100,000) as an investment. Oriole distributes property (fair market value of $375,000; basis of $187,500) to him
1.Brett owns stock in Oriole Corporation (basis of $100,000) as an investment. Oriole distributes property (fair market value of $375,000; basis of $187,500) to him during the year. Oriole has current E & P of $25,000 (which includes the E & P gain on the property distribution), accumulated E & P of $100,000, and makes no other distributions during the year. What is Bretts capital gain on the distribution?
| a. | $0
| |
| b. | $100,000
| |
| c. | $150,000
| |
| d. | $187,500
|
Step by Step Solution
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Step: 1
To determine Bretts capital gain on the distribution he receives from Oriole Corporation we will nee...
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Working Papers For Fundamental Accounting Principles Volume 2
Authors: Kermit Larson, Heidi Dieckmann
16th Canadian Edition
126030597X, 978-1260305975
