An S Corporation Distributes Land to Its Shareholders

question 1442

Multiple Choice

An S corporation distributes land to its shareholders. The land has a $60,000 basis and a $90,000 FMV. The basis of the land to the shareholder is

• A) $90,000.
• B) $0.
• C) $60,000.
• D) $30,000.

Interpret average collection period to assess the effectiveness of a company's credit policies and cash collection processes.

Determine accounts receivable turnover and its implications on liquidity and operational efficiency.

Analyze the financial leverage through the equity multiplier, debt-to-equity ratio, and times interest earned ratio to understand a company's financial structure and risk.

Understand and calculate various financial ratios including gross margin percentage, earnings per share (EPS), and price-earnings (P/E) ratio.

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