nd its tax basis is $59,000. Shadiya's basis in her stock is $23,500. Assume Carolina Corporation reported $0 taxable income before considering the tax consequences of the distribution. Note: Leave no answer blank. Enter zero if applicable. d. Assume the fair market value of the land is $40,200 rather than $96,600. How much gain must Shadiya recognize (if any) as a result of the distribu
Carolina Corporation, an S corporation, has no corporate Earnings and profit from its years as a C corporation. At the end of the year, it distributes a small parcel of land to its sole shareholder, Shadiya. The fair market value of the parcel is $96,600, and its tax basis is $59,000. Shadiya's basis in her stock is $23,500. Assume Carolina Corporation reported $0 taxable income before considering the tax consequences of the distribution.
Note: Leave no answer blank. Enter zero if applicable.
d. Assume the fair market value of the land is $40,200 rather than $96,600. How much gain must Shadiya recognize (if any) as a result of the distribution, what is her basis in her Carolina Corporation stock after the distribution, and what is her basis in the land?
| Gain Recognized | |
| Stock Basis | |
| Land Basis |
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