Why is this not 71,800? What's the real answer?

Exercise 22-19 (Algorithmic) (LO. 7) 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 $71,800 ten years ago and is currently worth $179,500. 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 Kf and a proportionate share of it passes through to the shareholders . Jamari would take a s 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 $179,500 and was currently worth $71,800. 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 q X . Jamari would take as basis in the land. Feedback V Check My Work When an S corporation distributes property (instead of cash) to a shareholder, the effect on AAA and shareholder's basis must be determined