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In the current year, Basset Corporation has $200,000 of current and accumulated earnings and profits (E&P). On March 3, Basset distributes to its shareholder Janet

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In the current year, Basset Corporation has $200,000 of current and accumulated earnings and profits (E\&P). On March 3, Basset distributes to its shareholder Janet a parcel of land (a capital asset) having a $59,000 FMV The land has a $47,000 adjusted basis (for both taxable income and E\&P purposes) to Basset and is subject to a $9,000 mortgage, which Janet assumes. Assume a 21% corporate tax rate. Read the requirements. Requirement a. What are the amount and character of the income Janet recognizes as a result of the distribution? Begin by calculating the amount of the distribution to be recognized by Janet Amount of distribution = Janet will recognize the distribution as Requirement b. What is Janet's basis in the land? Janet's basis in the land = Requirement c. What are the amount and character of Basset's gain or loss as a result of the distribution? Begin by calculating the amount of the distribution to be recognized by Basset. Amount of distribution (gain/loss) = Basset will recognize the distribution as Requirement d. What offect does the distribution have on Basset's E\&P? (Enter a net decrease with a munus sign Requirements a. What are the amount and character of the income Janet recognizes as a result of the distribution? b. What is Janet's basis in the land? c. What are the amount and character of Basset's gain or loss as a result of the distribution? d. What effect does the distribution have on Basset's E\&P? Requirement c. What are the amount and character of Basset's gain or loss as a result of the distribution? Begin by calculating the amount of the distribution to be recognized by Basset. Amount of distribution (gain/loss) = Basset will recognize the distribution as Requirement d. What effect does the distribution have on Basset's E\&P? (Enter a net decrease with a minus sign or parentheses.) Net increase (decrease) on Basset's E\&P =

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