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37. Bill incorporated his business four years ago and owns 100% of its stock. The corporation distributes a piece of land, used as a parking

37. Bill incorporated his business four years ago and owns 100% of its stock. The corporation distributes a piece of land, used as a parking lot for customers, to Bill. Bills basis in his stock is $21,000, and the land has a basis of $7,000 and a value of $24,000, and E&P is $5,000.

a. What are the tax consequences to the corporation?

b. To Bill?

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