Exercise 22-19 (a) (LO. 7) Khomenko, Inc., an Scorporation for nine years, distributes a tract of land held as an investment to Bernard, its majority shareholder. The land was purchased for $155,000 twelve years ago and is currently worth $450,000. If an amount is zero, enter, "0". a. As a result of the distribution, what is Khomenko's recognized capital gain? How much is reported as a distribution to shareholders? Khomenko recognizes a capital gain of $ 295,000 which is reported on Schedule K, and a proportionate share of it passes through to the shareholders . Bernard would take a s b. What is the net effect of the distribution on Khomenko's AAA? 450,000 basis in the land. There is a net decrease of $ to Khomenko's AAA. Assume instead that the land had been purchased for $450,000 and was currently worth $155,000. How much would Khomenko recognize as a loss? What would be the net effect on Khomenko's AAA? What would be Bernard's basis in the land? Khomenko recognizes a loss of 0 and the net effect on Khomenko's AAA is a decrease of 5 Bernard would take a basis in the land