In each of the following problems, identify the tax issues posed by the facts presented. Determine the possible tax consequences of each issue that you identify.

65. Kummell Corporation reports a $200,000 taxable income in the current year.

Included in the taxable income calculation are $20,000 in dividends received from

less-than-20%-owned corporations, and $30,000 in charitable contributions.

66. Milena owns a 25% interest in Davis Company, an S corporation. Her basis in the Davis

stock is $40,000. Davis reports an operating loss of $200,000 in the current year. Davis

owes Milena $25,000 on a loan she made to the company several years ago.

67. Charlene owns a 70% interest in Maupin Mopeds, which is organized as a partnership.

She wants to open another business and needs office space for it. She has

Maupin distribute a building worth $150,000 to her in lieu of her normal cash distribution.

Maupin