eBook Exercise 22-19 (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 $200,000 two years ago and is currently worth $377,000. If an amount is zero, enter, "0". a. As a result of the distribution, what is Advantage Appliance's recognized capital gain? How much is reported as a distribution to shareholders? Advantage Appliance recognizes a capital gain of S 169,000 which is reported on Schedule K, and a proportionate share of it passes through to the shareholders Phillipa would take a s 377,000 basis in the land. b. What is the net effect of the distribution on Advantage Appliance's AAA? There is a net decrease of 5