Ten years ago, Vogel, Inc., an S corporation, purchased a plot of investment land for $45,000. This

Question:

Ten years ago, Vogel, Inc., an S corporation, purchased a plot of investment land for $45,000. This year, Vogel distributed the land, now worth $120,000, to Jamari, its majority shareholder.
a. Determine the effects of the on the gross income of Vogel and Jamari, and on Vogel's AAA balance.
b. How would your responses change if the land had been purchased for $120,000 and now was worth $45,000?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...