Corporation distributes property with a basis of $40,000, FMV of $50,000 and subject to a liability of $55,000 to its shareholders. Assuming no other limiting information, Corporation recognizes gain/(loss) of:| O $15,000. O $55,000. O so. O S10.000. O No response is correct.
Corporation distributes property with a basis of $40,000, FMV of $50,000 and subject to a liability of $55,000 to its shareholders. Assuming no other limiting information, Corporation recognizes gain/(loss) of:| O $15,000. O $55,000. O so. O S10.000. O No response is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.
Transcribed Image Text:Corporation distributes property with a basis of $40,000, FMV of $50,000 and subject to a liability of $55,000 to its shareholders. Assuming no other limiting information,
Corporation recognizes gain/(loss) of:
O $15,000
O $55,000.
O $0.
O $10,000.
O No response is correct.
O ($5.000).
Question 6
On January 1. a corporation has accumulated E & Pof $300.000. During the year, they incur a net loss of S 420.000 from operations that acerues ratably throughout the year. On
July 1, the corporation distributes $180.000 to its sole shareholder witha stock basis of $112.500. How much of the $180.000 is a dividend?
O $112.500
O S0
O No response is correct
O $90.000
O $240.000
O $180.000
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