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Donald Lump and his two sons owned 100 percent of Nut Cakes,Inc. Donald owned 50 percent of the stock, but he had 25 pe the
Donald Lump and his two sons owned 100 percent of Nut Cakes,Inc. Donald owned 50 percent of the stock, but he had 25 pe the corporation for a building with Donald's basis of $10,000 and a value of $50,000. If E&P is $200,000 and Donald's basis in his stock before the distribution was $20,000, the stock and building basis after the redemption are:
Select one:
a.stock basis $10,000 building basis $50,000
b.stock basis $20,000 building basis $50,000
c.stock basis $20,000 building basis $10,000
d.stock basis $10,000 building basis $10,000
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