36/37 36. A shareholders adjusted basis in the shareholders stock is used to make determinations with respect to which of the following? a. the extent to which a distribution made by the corporation to the shareholder is taxable. b. the amount of losses that shareholders may deduct in a given year. c. the shareholders realized gain or loss upon the sale or exchange of the stock. d. all of the above. 37. In the current year, Sue received a liquidating distribution of real estate from UTSRQ Partnership, a general partnership. The real estate had an adjusted basis to the partnership of $35,000 and a fair market value of $90,000 on the date of the distribution. Sues adjusted basis in her 20 percent interest in UTSRQ Partnership was $50,000. How much gain or loss did Sue recognize on receipt of the distribution and what is her basis in the real estate? \ a. 0 gain or loss recognized and a $50,000 basis in the real estate. b. ($15,000) loss recognized and a $35,000 basis in the real estate. c. 0 gain or loss recognized and a $35,000 basis in the real estate. d. $40,000 gain recognized and a $90,000 basis in real estate. e. $15,000 gain recognized and a $50,000 basis in real estate