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26. A corporation distributes a truck it has owned for three years to its sole shareholder. The shareholder will use the truck for personal use

26. A corporation distributes a truck it has owned for three years to its sole shareholder. The shareholder will use the truck for personal use activity. The truck's fair market value a the time of distribution is greater that its adjusted basis, but less than its original cost. Does the corporation recognize a gain? If so, what is the character of the gain?

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