S Corporation Distributed Land Used in Its Business Worth $30,000

question 14

Multiple Choice

S Corporation distributed land used in its business worth $30,000 (basis $5,000) to its sole shareholder, G.Assuming S has substantial earnings and profits, G's dividend and basis for the property will be

• A)$30,000 dividend, $30,000 basis
• B)$5,000 dividend, $5,000 basis
• C)$30,000 dividend, $5,000 basis
• D)$5,000 dividend, $30,000 basis
• E)None of the above

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Definitions:

Stammering

A speech disorder characterized by involuntary repetitions and prolongations of sounds, syllables, or words.

Lisp

A speech impediment that affects the pronunciation of sibilants, causing them to be pronounced with a "th" sound.

Magical Thinking

The belief that one's thoughts, wishes, or desires can influence the physical world; common in children and certain psychiatric conditions.

All-Powerful

Having complete power and influence over others or situations; omnipotent.