Carlota and Dave formed an S corporation that is owned as follows: Carlota 75% and Dave 25%.

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Carlota and Dave formed an S corporation that is owned as follows: Carlota 75% and Dave 25%. The corporation distributes an asset to each owner. The corporation has a basis of $45,000 for each asset. The fair market value of each of the assets is as follows: Carlota $90,000 and Dave $50,000. The distribution results in:

a. How much recognized gain for the corporation?
b. How much gain to Dave?
c. How much gain to Carlota?

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South-Western Federal Taxation 2022 Corporations, Partnerships, Estates And Trusts

ISBN: 9780357519240

45th Edition

Authors: William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman

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Question Posted: May 14, 2023 04:39 AM

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Carlota and Dave formed an S corporation that is owned as follows: Carlota 75% and Dave 25%.

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South-Western Federal Taxation 2022 Corporations, Partnerships, Estates And Trusts

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