An S Corporation Distributes Land with a Basis of $60,000

question 29

Multiple Choice

An S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its shareholders. The tax results of the distribution will be

• A)no gain to the corporation or to the shareholders.
• B)$30,000 of gain recognized by the S corporation and no pass through to the shareholders.
• C)no gain recognized by the corporation but $30,000 of gain recognized by the shareholders.
• D)$30,000 of gain recognized by the S corporation which is passed through to the shareholders.

---

Definitions:

Influenced Factor

An element that affects or alters the outcome of a process or situation.

Sexual Arousal

A physiological and psychological state of being awake or reactive to sexual stimuli.

Laughter

A vocal expression of emotion, typically associated with happiness, amusement, or relief, often serving as a social bonding mechanism.

Experimental Study

A research method involving the manipulation of variables to establish cause and effect relationships.