Situation a. All-Star Corporation distributes land having a $205,000 FMV and a $95,000 adjusted basis to Sharon, its sole shareholder. The land, a capital asset, is subject to a $65,000 mortgage, which Sharon assumes. (Click the icon to view the possible changes necessary to improve the tax consequences.) Gain or loss recognized Character Shareholder's Change necessary basis for to improve the property received tax consequences Shareholder Property Amount a. Sharon Land - X More Info a. All - Star Corporation distributes land having a $205,000 FMV and a $95,000 adjusted basis to Sharon, its sole shareholder. The land, a capital asset, is subject to a $65,000 mortgage, which Sharon assumes. b. Donaldson Corporation distributes depreciable property to its two equal shareholders. Nate receives a milling machine having a $55,000 adjusted basis and a $65,000 FMV. The corporation claimed $50,000 depreciation on the machine. The corporation purchased the milling machine from an unrelated seller four years ago. Brenda receives an automobile that originally cost $41,500 two years earlier and has a $26,500 FMV. The corporation claimed $26,000 depreciation on the automobile. c. Berkner Corporation distributes marketable securities having a $300,000 FMV and a $465,000 adjusted basis to Brian, a 66.67% shareholder. Berkner purchased the marketable securities three years ago. Berkner distributes $150,000 cash to Tanya, a 33.33% shareholder. d. Assume the same facts as in Part c except the securities and cash are instead each distributed two-thirds to Brian and one-third to Tanya. CH Iswer