LO.4, 5 Palin, Inc., a calendar year S corporation, is owned equally by four shareholders, Alice, Bill,
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LO.4, 5 Palin, Inc., a calendar year S corporation, is owned equally by four shareholders, Alice, Bill, Charles, and Donald. The company owns a plot of land that was purchased for
$140,000 three years ago. On November 24, 2010, when the land is worth $220,000, it is distributed to Donald. Assuming Donald’s basis in his S corporation stock is $290,000 on the distribution date, what are the tax ramifications?
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Related Book For 
South Western Federal Taxation 2011 Taxation Of Business Entities
ISBN: 9780538498616
14th Edition
Authors: James E. Smith, William A. Raabe, David M. Maloney
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