Fred Is the Sole Shareholder of an S Corporation in Fort

question 49

Multiple Choice

Fred is the sole shareholder of an S corporation in Fort Deposit,Alabama.At a time when his stock basis is $20,000,the corporation distributes appreciated property worth $100,000 (basis of $20,000) .Fred's taxable gain is:

• A)$0.
• B)$10,000.
• C)$80,000.
• D)$100,000.
• E)None of the above.

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