Catamount Company Had Current and Accumulated E&P of $500,000 at December

question 83

Multiple Choice

Catamount Company had current and accumulated E&P of $500,000 at December 31,20X3. On December 31, the company made a distribution of land to its sole shareholder, Caroline West. The land's fair market value was $200,000 and its tax and E&P basis to Catamount was $250,000. The tax consequences of the distribution to Catamount in20X3 would be:

• A) No loss recognized and a reduction in E&P of $250,000.
• B) $50,000 loss recognized and a reduction in E&P of $150,000.
• C) No loss recognized and a reduction in E&P of $200,000.
• D) $50,000 loss recognized and a reduction in E&P of $250,000.

---

Definitions:

Performance Information

Data and metrics related to the effectiveness and efficiency of an employee's or organization's work performance.

Power Relationships

The dynamics of control, influence, and authority among individuals and groups within an organization or society.

Mixed-Standard Scale

An evaluation tool that measures an individual's performance against fixed standards that represent different levels of achievement.

Performance Dimensions

Various criteria or aspects used to assess an individual's work performance, including quality, efficiency, and reliability.