Harmony Corporation an corporion is considering making a distribution of land to its sole shareholder Harmony acquired the land three years age and used in its business activities. The land now has 500 000 usted basi and 5155.00 FMV Hamon has been an Seorporation since its inception 17 years ago Explain the tax consequences of the land distribution to the corporation and to the shareholder OA. The corporation recognizes a $95.000 Sec 1221 gain under Sectibles cated property to da sole shareholdet. This gan patrough and stared to the shareholder The basis of the property to the shareholder wo be $155.000 The shareholders base in his Harmony stock ince by the $95.000 gal recogired by the corporation and decreases by the 155.000 FMV of the land be the corporation pays notes on 5000 gain recognized OB. the scoperto recognizes a 3.000 S 1231 an under Sec 31 dslribes the pred property is so shareholder. Te gan puses through and is teed to shareholdet. The basis of the property to the wilderw be 395.000 The hardes bons amony od cesty 15 000 in the land dort und die Bye 1.000 ganged by the corporation the corpo yes on the 595 000 anrecoged OCThe corporion does not consistente social property to shareholder. The basis of the party to the thithole 0.000 The shootinamon sol y 60.000 ved both und anders by the 5756106 FMV of the land debuted The corporation persons in the distribution OD The Springs .000 . 12 lase de Sec 1 distribute the appreciated property tool tharchod This does not pass the share the basis of property the Whathoke witbe 51.000 The sharchu's basish Harmony odesty the 500.000 cont by the corporation and decree by 5155.000 FMV of the land distributed the corporationer the 160.000 fosse cogene gain any, loredice stability for the current year Harmony Corporation an corporion is considering making a distribution of land to its sole shareholder Harmony acquired the land three years age and used in its business activities. The land now has 500 000 usted basi and 5155.00 FMV Hamon has been an Seorporation since its inception 17 years ago Explain the tax consequences of the land distribution to the corporation and to the shareholder OA. The corporation recognizes a $95.000 Sec 1221 gain under Sectibles cated property to da sole shareholdet. This gan patrough and stared to the shareholder The basis of the property to the shareholder wo be $155.000 The shareholders base in his Harmony stock ince by the $95.000 gal recogired by the corporation and decreases by the 155.000 FMV of the land be the corporation pays notes on 5000 gain recognized OB. the scoperto recognizes a 3.000 S 1231 an under Sec 31 dslribes the pred property is so shareholder. Te gan puses through and is teed to shareholdet. The basis of the property to the wilderw be 395.000 The hardes bons amony od cesty 15 000 in the land dort und die Bye 1.000 ganged by the corporation the corpo yes on the 595 000 anrecoged OCThe corporion does not consistente social property to shareholder. The basis of the party to the thithole 0.000 The shootinamon sol y 60.000 ved both und anders by the 5756106 FMV of the land debuted The corporation persons in the distribution OD The Springs .000 . 12 lase de Sec 1 distribute the appreciated property tool tharchod This does not pass the share the basis of property the Whathoke witbe 51.000 The sharchu's basish Harmony odesty the 500.000 cont by the corporation and decree by 5155.000 FMV of the land distributed the corporationer the 160.000 fosse cogene gain any, loredice stability for the current year
