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Please show your work. 2. Green, Inc., a C corporation, distributes a tract of land held as an investment (FMV = $500,000, basis $220,000) and

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2. Green, Inc., a C corporation, distributes a tract of land held as an investment (FMV = $500,000, basis $220,000) and its mortgage of $550,000 to Susan in return for 50 of her shares at the end of the year. Green, Inc. has a current E&P of $190,000 for the year, and started the year an accumulated E & P of $60,000. Green's marginal tax rate is 21%. Susan has an individual marginal tax rate of 33% and both a dividend and a long-term capital gains tax rate of 15%. Susan owns 200 of Green's 1,000 shares outstanding and her basis in her Green stock is $20,000. Susan has held her stock for two years. The distribution is a qualified stock redemption. How much of the distribution is classified as a return of capital? e. f. How much of the distribution is taxed as a capital gain? e. What is the increase in Susan'stax liability as a result of the distribution? h. What is Green's ending E&P (after the distribution)? i. What is Susan's basis in the land? j. What is Susan's ending basis in her Green stock

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