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Providence Corporation distributes Land (Adjusted Basis of $120,000 and Fair Market Value of $20,000) as a Property Dividend to its shareholders. The Land is subject

Providence Corporation distributes Land (Adjusted Basis of $120,000 and Fair Market Value of $20,000) as a Property Dividend to its shareholders. The Land is subject to a liability of $200,000. As a result of this distribution, Providence Corporation must (has) Recognized Gain of: $ 80,000. $100,000. $180,000. $ -0-.

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