During the Year, Hickory Corporation Distributed Land Worth $40,000 (Basis

question 31

Multiple Choice

During the year, Hickory Corporation distributed land worth $40,000 (basis $7,000) and equipment worth $10,000 (basis $15,000) to one of its shareholders, R.Due to the distributions, the corporation will report

• A)Net income of $28,000 if the distributions are treated as a dividend out of Maple's E&P
• B)Net income of $33,000 if the distributions qualify for sale treatment under the basic redemption rules of 302
• C)No gain or loss if the distribution qualifies for sale treatment under the partial liquidation rules
• D)None of the above answers is correct.

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Definitions:

Anterior Tibial Artery

A major blood vessel in the lower leg that supplies blood to the anterior compartment of the leg and dorsum of the foot.

Posterior Tibial Artery

A major artery of the lower leg, supplying blood to the posterior compartment of the leg and plantar surface of the foot.

Thoracic Aorta

The portion of the aorta passing through the chest, from which arise the branches that supply oxygenated blood to the chest cage and organs within the thorax.

Abdominal Aorta

The main artery that runs down the abdomen and supplies blood to the organs and tissues of the abdomen.