Wills Corporation, Which Has Accumulated a Current E&P Totaling $65,000

question 71

Multiple Choice

Wills Corporation, which has accumulated a current E&P totaling $65,000, distributes land to its sole shareholder, an individual. The land has an FMV of $75,000 and an adjusted basis of $55,000. The shareholder assumes a $15,000 liability associated with the land. The shareholder will recognize

• A)$60,000 of dividend income and have a $60,000 basis in the land.
• B)$65,000 of dividend income and have a $75,000 basis in the land.
• C)$60,000 of dividend income and have a $75,000 basis in the land.
• D)$65,000 of dividend income and have a $65,000 basis in the land.

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Definitions:

Cognitive Development

The process of growth and change in intellectual capabilities such as thinking, reasoning, and understanding.

WAIS

The Wechsler Adult Intelligence Scale, a widely used test designed to measure the intelligence of adults and older adolescents.

KABC-II

The Kaufman Assessment Battery for Children, Second Edition (KABC-II) is a comprehensive cognitive assessment tool for children that evaluates processing and cognitive abilities.

Wechsler Scales

A set of standardized tests designed to measure intelligence and cognitive ability in children and adults.