Finch Corporation (E & P of $400,000) Distributed Machinery ($10,000

question 68

Essay

Finch Corporation (E & P of $400,000) distributed machinery ($10,000 adjusted basis, $150,000 fair market value) to its sole shareholder, Kathleen. The property is subject to a $50,000 mortgage, which Kathleen assumed. How much dividend income does Kathleen recognize as a result of the distribution and what is her basis in the machinery?

---

Definitions:

Basal Metabolic Rate

The rate of energy utilisation by the body while idle, necessary for maintaining key bodily functions like breathing and thermal regulation.

Body Mass Index

An index that calculates body fat using an individual's weight and height, suitable for both adult males and females.

Set Point

A theory suggesting that each individual has a genetically determined range of weight and temperature that their body will try to maintain to stay at optimal health.

PYY Level

The concentration of peptide YY, a hormone involved in regulating appetite and food intake, within the bloodstream.