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Joyce Corporation has positive Current Earnings And Profits (E&P) of $60,000. It distributes Land worth (Fair Market Value) $64,000 (Adjusted Basis of $44,000) to Ruth,

Joyce Corporation has positive Current Earnings And Profits (E&P) of $60,000. It distributes Land worth (Fair Market Value) $64,000 (Adjusted Basis of $44,000) to Ruth, an individual shareholder. The Land is subject to a mortgage of $24,000 which Ruth assumes. Ruth has Taxable Income (Dividends) of:

$60,000.$20,000.$40,000.$64,000

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