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

question 27

Multiple Choice

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

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

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Definitions:

Gender Differences

Variations in characteristics, behaviors, and roles traditionally associated with men and women, influenced by social, cultural, and biological factors.

Individual Difference

variations among people in their qualities, abilities, or characteristics.

Large Divisions

Significant differences or disagreements among groups or individuals.

Negotiation

A process where two or more parties communicate and compromise to reach an agreement beneficial to all involved.