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Robin Corp distributes furniture (basis of $40,000, fair market value of $50,000) as a property dividend to its shareholders. The furniture is subject to a

Robin Corp distributes furniture (basis of $40,000, fair market value of $50,000) as a property dividend to its shareholders. The furniture is subject to a liability of $55,000 Robin Corp recognizes gain of:

a). $55,000

b). $15,000

c). $10,000

d). $0

e). None of the above

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