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 $$238,400$ ten years ago and is currently worth $$596,000.$

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

a proportionate share of it passes through to the shareholders $.$ 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 $$596,000$ and was currently worth $$238,400.$ 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 $

$x$ basis in the land.