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Holdbrook, Inc., an S corporation, distributes a tract of land held as an investment to Karl, its majority shareholder. The land was purchased for $22,000

Holdbrook, Inc., an S corporation, distributes a tract of land held as an investment to Karl, its majority shareholder. The land was purchased for $22,000 many years ago and currently is worth $82,000. Holdbrooks taxable gain is:

a. $-0-.

b. $22,000.

c. $60,000.

d. $82,000

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