Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $275,800 ten years ago and is currently worth $689,500. If an amount is zero, enter, "0". a. As a result of the distribution, what is Vogel's recognized capital gain? How much is reported as a distribution to shareholders? Vogel recognizes a capital gain ✔ of $ which is reported on Schedule K, and a proportionate share of it passes through to the shareholders ✔. Jamari would take a $ b. What is the net effect of the distribution on Vogel's AAA? basis in the land. There is a net decrease of $ on Vogel's AAA. c. Assume instead that the land had been purchased for $689,500 and was currently worth $275,800. How much would Vogel recognize as a loss? What would be the net effect on Vogel's AAA? What would be Jamari's basis in the land? Vogel recognizes a loss $ 0and the net effect on Vogel's AAA is a decrease ✓ of $ take a $ basis in the land. Jamari would

Vogel, Inc., an S corporation for five years, distributes a tract of land held as an investment to Jamari, its majority shareholder. The land was purchased for $275,800 ten years ago and is currently worth $689,500. If an amount is zero, enter, "0". a. As a result of the distribution, what is Vogel's recognized capital gain? How much is reported as a distribution to shareholders? Vogel recognizes a capital gain ✔ of $ which is reported on Schedule K, and a proportionate share of it passes through to the shareholders ✔. Jamari would take a $ b. What is the net effect of the distribution on Vogel's AAA? basis in the land. There is a net decrease of $ on Vogel's AAA. c. Assume instead that the land had been purchased for $689,500 and was currently worth $275,800. How much would Vogel recognize as a loss? What would be the net effect on Vogel's AAA? What would be Jamari's basis in the land? Vogel recognizes a loss $ 0and the net effect on Vogel's AAA is a decrease ✓ of $ take a $ basis in the land. Jamari would

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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