Corkie Corporation Distributes $80,000 Cash Along with Land Having a $60,000

question 50

Multiple Choice

Corkie Corporation distributes $80,000 cash along with land having a $60,000 adjusted basis and a $40,000 FMV to its shareholder Josh.What are the tax consequences to Corkie Corporation?

• A)$20,000 loss realized and recognized
• B)$20,000 loss realized but not recognized
• C)$20,000 gain realized but not recognized
• D)$20,000 gain realized and recognized

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Definitions:

Tenth Year-end Deposit

The act of placing funds into a financial account or investment at the end of the tenth year of the account or investment's existence.

Annual Year-end Payments

Payments made at the end of a fiscal year, often related to taxes, dividends, or bonuses.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Annual Rate

A percentage representing the interest, return, or changes expected over a one-year period for investments, loans, or growth calculations.