Corporation Z distributes in kind its long held Apple stock with an adjusted basis of $480 and a fair market value of $200 to shareholder C. Corporation Z also distributes Apple stock with an adjusted basis of $120 at a fair market value of $200 to shareholder D.

a. Corporation Z does not have a loss on the distributions.

b. The distributions to C will reduce E&P by $480 (but not create negative E&P). c

. Corporation Z realizes gain of $80 on the distribution of the property and that amount less accrued income tax is added to E&P.

d. All of the above.

e. None of the above PLESE EXPLAIN IF YOU CAN