In the Current Year, Warbler Corporation (E & P of $250,000)

question 107

Multiple Choice

In the current year, Warbler Corporation (E & P of $250,000) made the following property distributions to its shareholders (all corporations) : $\begin{array}{lrr}&&\text { FairMarket }\\&\text { AdjustedBasis }&\text { Value }\\\text { Pink Corporation stock (held for investment) } & \$ 150,000 & \$ 120,000 \\\text { Non-LIFO inventory } & 80,000 & 110,000\end{array}$ Warbler Corporation is not a member of a controlled group. As a result of the distribution:

• A) The shareholders have dividend income of $200,000.
• B) The shareholders have dividend income of $260,000.
• C) Warbler has a recognized gain of $30,000 and a recognized loss of $30,000.
• D) Warbler has no recognized gain or loss.
• E) None of these.

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Definitions:

Aboriginal Peoples

Indigenous populations native to a land prior to colonization or the formation of nation states, particularly in Australia, Canada, and other parts.

Roma Gypsies

An ethnic group traditionally characterized by a nomadic or peripatetic lifestyle, present across Europe and other parts of the world.

Social Change

The alteration in social structure and cultural patterns over time, driven by collective behavior, innovations, or external influences.

Collective Behaviour

Actions or activities undertaken by a group of people with a common interest or purpose, often spontaneous rather than traditional.