When Appreciated Property Is Distributed in a Nonliquidating Distribution, the Net

question 86

True/False

When appreciated property is distributed in a nonliquidating distribution, the net effect on the distributing corporation's E&P is that it is reduced by the FMV of the property distributed and increased by the gain (net of federal income taxes)recognized due to the property distribution.

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Definitions:

Heterozygous

Having a pair of unlike alleles for a particular locus. Compare with homozygous.

Dominant

Referring to a trait that is expressed in the phenotype even when only one allele is present.

Recessive Allele

An allele that is not expressed in the heterozygous state. Compare with dominant allele.

Hybrid

The offspring of two genetically dissimilar parents.