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In a non liquidated distribution, Drag Race distributes land with a basis of $40,000, FMV of $60,000 and subject to a $75,000 mortgage to its

In a non liquidated distribution, Drag Race distributes land with a basis of $40,000, FMV of $60,000 and subject to a $75,000 mortgage to its sole shareholder. Jake. Jake will assume the mortgage on the land in this distribution. How much gain will Drag race recognize on this distribution. A. $0 B. $35,000 c. $20,000

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