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Penguin Corporation (E & P of $500,000) distributes land (fair market value of $150,000; basis of $160,000) to an estate in a redemption to pay

Penguin Corporation (E & P of $500,000) distributes land (fair market value of $150,000; basis of $160,000) to an estate in a redemption to pay death taxes under § 303. Penguin Corporation recognizes a $10,000 loss as a result of the distribution.

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