Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land

was purchased for $$269,000$ ten years ago and is currently worth $$672,500.$

If an amount is zero, enter, $"0".$

a$.$ As a result of the distribution, what is Vogel's recognized capital gain? How much is reported as a distribution to shareholders?

Vogel recognizes

of $

which is reported on Schedule $K,$ and

$.$ Jamari would take

a $

basis in the land.

b$.$ What is the net effect of the distribution on Vogel's AAA?

There is a net

of $

on Vogel's AAA.

c$.$ Assume instead that the land had been purchased for $$672,500$ and was currently worth $$269,000.$ How much would Vogel recognize

as a loss? What would be the net effect on Vogel's AAA? What would be Jamari's basis in the land?

Vogel recognizes a loss $

and the net effect on Vogel's AAA is

of $

$.$ Jamari would take

a $

basis in the land.