Evergreen Corporation Distributes Land with a Fair Market Value of $200,000

question 30

True/False

Evergreen Corporation distributes land with a fair market value of $200,000 to its sole shareholder.Evergreen's tax basis in the land is $50,000.Assuming sufficient earnings and profits, the amount of dividend reported by the shareholder is $200,000.

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Definitions:

Phobia of Closed Spaces

A phobia of closed spaces, commonly known as claustrophobia, is an anxiety disorder characterized by an irrational fear of being confined in small or enclosed spaces.

Cognitive Therapy

A form of psychotherapy that emphasizes the role of thinking in how we feel and in what we do, aimed at changing negative patterns of thought.

Major Depressive Disorder

A mental disorder characterized by a persistent and intense feeling of depression that affects how a person feels, thinks, and handles daily activities.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses through gradual exposure to the feared object or situation while practicing relaxation techniques.