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

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Definitions:

Testing Ideas

The process of evaluating the viability or effectiveness of a concept through experimentation or pilot studies.

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An initial concept which someone intends to turn into a viable business opportunity, focusing on a product, service, or innovation to fulfill a market need.

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Home Care Business

A company that provides medical, therapeutic, or personal care services to individuals in their own homes.