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A Business Entity Has Appreciated Land Basis of $50,000 and Fair

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Essay

A business entity has appreciated land basis of $50,000 and fair market value of $75,000) which it is going to distribute to Craig, one of its owners. The entity has earned substantial profits during its 15 years of operations and has reinvested most of them in the business. What are the tax consequences of the distribution to the business entity and to Craig if the business entity is an):
a. C corporation?
b. S corporation?
c. Partnership?


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