eBook Calculator Exercise 22-21 (c) (LO. 7) Advantage Appliance, Inc., an s corporation for three years, distributes a tract of land held as an investment to Phillipa, its majority shareholder. The land was purchased for $208,000 two years ago and is currently worth $377,000. If an amount is zero, enter, "0". of $ which is reported on a. As a result of the distribution, Advantage Appliance recognizes Schedule K, and . In addition, the AAA is increased by b. Then the property distribution reduces the AAA by s . Therefore, the net effect on AAA is a s and the C. If the land had been purchased for $377,000 and was currently worth $208,000, Phillipa recognizes a loss $ net effect on Advantage Appliance's AAA is s J. Phillipa would take a s basis in the land