A Corporation Distributes Land with a FMV of $85,000 (Basis

question 115

Multiple Choice

A corporation distributes land with a FMV of $85,000 (basis $50,000) . The land has a mortgage of $95,000 assumed by the shareholder. Gain to the corporation is

• A) $35,000.
• B) $10,000.
• C) $0.
• D) $45,000.

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