Robin Corporation Distributes Furniture (Basis of $40,000? Fair Market Value

question 9

Multiple Choice

Robin Corporation distributes furniture (basis of $40,000? fair market value of $50,000) as a property dividend to its shareholders. The furniture is subject to a liability of $55,000. Robin Corporation recognizes gain of:

• A) $55,000.
• B) $15,000.
• C) $10,000.
• D) $0.
• E) None of the above.