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XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $80,000 Fair Market Value of $200, 000 to sole shareholder-Johnson. The property is subject to Liability of $50,000 which shareholder assumes (A) (B) How much dividend Johnson report What is his basis in the machinery What is the effect on corporation's earnings and E & P

XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $80,000 Fair Market Value of $200, 000 to sole shareholder-Johnson. The property is subject to Liability of $50,000 which shareholder assumes (A) (B) How much dividend Johnson report What is his basis in the machinery What is the effect on corporation's earnings and E & P

FINANCIAL ACCOUNTING
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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ob 2 XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $80,000 Fair Market Value of $200, 000 to sole shareholder-Johnson. The property is subject to Liability of $50,000 which shareholder assumes (A) (B) How much dividend Johnson report What is his basis in the machinery What is the effect on corporation's earnings and E & P
Transcribed Image Text:ob 2 XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $80,000 Fair Market Value of $200, 000 to sole shareholder-Johnson. The property is subject to Liability of $50,000 which shareholder assumes (A) (B) How much dividend Johnson report What is his basis in the machinery What is the effect on corporation's earnings and E & P
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