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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 dividend Johnson report 150000-10000 140000 What is his basis in the machinery 150000 (B) FMV What is the effect on corporation's eamings and E & P Increase by gain Increase by liab 130000 10000 -150000 Decrease by FMV -10000
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Income Tax Fundamentals 2019
Authors: Gerald E. Whittenburg, Steven Gill
37th Edition
1337703060, 1337673218, 9781337673211, 978-1337703062
