Puffin Corporation Makes a Property Distribution to Its Sole Shareholder

question 165

Multiple Choice

Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $30,000; fair market value of $20,000) that is subject to a $6,000 liability, which Bonnie assumes. Puffin has no accumulated E & P and $30,000 of current E & P from other sources during the year. What is Puffin's E & P after taking into account the distribution of the car?

• A) $4,000
• B) $6,000
• C) $10,000
• D) $14,000
• E) None of these.

---

Definitions:

Hardy

Referring to an organism's ability to survive and reproduce under unfavorable environmental conditions.

High-stress Job

Occupations that involve high levels of pressure and responsibility, often leading to increased stress and burnout.

Challenges

Difficulties that require a significant effort or skill to overcome.

Conscientiousness

A personality trait characterized by organization, responsibility, and dependability.