Brett Owns Stock in Oriole Corporation (Basis of $100,000) as an Investment

question 53

Multiple Choice

Brett owns stock in Oriole Corporation (basis of $100,000) as an investment. Oriole distributes property (fair market value of $375,000? basis of $187,500) to him during the year. Oriole has current E & P of $25,000 (which includes the E & P gain on the property distribution) , accumulated E & P of $100,000, and makes no other distributions during the year. What is Brett's capital gain on the distribution?

• A) $0
• B) $100,000
• C) $150,000
• D) $187,500
• E) None of the above

---

Definitions:

Financial Crisis

A situation in which the value of financial institutions or assets drops significantly and is often accompanied by panic selling and uncertainty in the financial markets.

Europe 1924

A period marked by recovery from World War I and the beginning of significant political and social changes in Europe, including the stabilization of economies and the rise of various political movements.

Florida Land Boom

A period in the 1920s marked by rapid land development and speculative real estate investments in Florida, leading to a bubble that eventually burst.

Mid-1920s

A period in the 20th century, specifically the years around 1925, marking significant social, economic, and political changes worldwide.