Bryce, an individual, owns stock in Phillies Corporation $($basis of $$300,000)$ as an investment. Phillies distributes property $($fair market value of $$400,000$; basis of $$125,000)$ to Bryce on $12/31$ of the current year. Phillies has current E &P of $$125,000($which INCLUDES the E & P gain resulting from that $$400,000$ property distribution$),$ accumulated E &P of $$200,000,$ and makes no other distributions during the year. What, if any, is Bryce$$s capital gain on the distribution?

OKAY $-$ Back to distributions...

Bryce, an individual, owns stock in Phillies Corporation $($basis of $$300,000)$ as an investment. Phillies distributes property $($fair market value of $$400,000$; basis of $$125,000)$ to Bryce on $12/31$ of the current year. Phillies has current E &P of $$125,000($which INCLUDES the E & P gain resulting from that $$400,000$ property distribution$),$ accumulated E &P of $$200,000,$ and makes no other distributions during the year. What, if any, is Bryce$$s capital gain on the distribution?

$$75,000$

$$0$

$$100,000$

$$275,000$