Question
XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $20,000 Fair Market Value of $150,000 to sole shareholder. The property is subject to Liability
XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $20,000 Fair Market Value of $150,000 to sole shareholder. The property is subject to Liability of $10,000 which shareholder assumes
a) How much dividends Johnson report
b) What is his basis in the machinery
What is the effect on corporation's earning and E&P
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Managerial Accounting
Authors: James Jiambalvo
3rd Edition
0470038152, 978-0470038154
