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C is wrong Assume that at the end of 2016, Clampett, Inc. (an S corporation) distributes property (fair market value of $64,000, basis of $13,000)
C is wrong
Assume that at the end of 2016, Clampett, Inc. (an S corporation) distributes property (fair market value of $64,000, basis of $13,000) to each of its four equal shareholders (aggregate distribution of $256,000). At the time of the distribution, Clampett, Inc. has no corporate E&P and J. D. has a basis of $53, 200 in his Clampett, Inc. stock. How much income does J. D. recognize as a result of the distribution? None of the choices are correct. $51,000. $13,000. $64,000. $0Step by Step Solution
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