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The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is

  1. The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is the amount of the distribution to Ben?

    a. $80,000.

    b. $50,000.

    c. zero.

    d. $30,000.

    e. none of the above.

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