Question
Olympic Corporation distributed real estate with a FMV of $500,000 to its sole shareholder, Joshua. Olympic's basis in the real estate is $400,000. What is
Olympic Corporation distributed real estate with a FMV of $500,000 to its sole shareholder, Joshua. Olympic's basis in the real estate is $400,000. What is the tax effect of the distribution to Olympic and what is Joshua's basis in the real estate?
- A.
- $100,000 gain to Olympic; $400,000 basis to Joshua.
- B.
- $100,000 gain to Olympic; $500,000 basis to Joshua.
- C.
- $0 gain (loss) to Olympic; $400,000 basis to Joshua.
- D.
- $0 gain (loss) to Olympic; $500,000 basis to Joshua.
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Horngrens Financial & Managerial Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
0133255573, 978-0133255577
