9 When making non-cash distributions where the fair market value of the property distirbuted exceeds its adjusted basis, corporations must: a. Defer the gain until such time as the recipient shareholder disposes of all stock in the corporation b. Disclose the adjusted basis info to the recipient shareholder so the shareholder may recognize the gain upon disposition. c. Recognize gain under IRC 311
9 When making non-cash distributions where the fair market value of the property distirbuted exceeds its adjusted basis, corporations must: a. Defer the gain until such time as the recipient shareholder disposes of all stock in the corporation b. Disclose the adjusted basis info to the recipient shareholder so the shareholder may recognize the gain upon disposition. c. Recognize gain under IRC 311
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9 When making non-cash distributions where the fair market value of the property distirbuted exceeds its adjusted basis, corporations must:
a. Defer the gain until such time as the recipient shareholder disposes of all stock in the corporation
b. Disclose the adjusted basis info to the recipient shareholder so the shareholder may recognize the gain upon disposition.
c. Recognize gain under IRC 311
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