Evergreen Corporation Distributes Land with a Fair Market Value of $200,000

question 30

True/False

Evergreen Corporation distributes land with a fair market value of $200,000 to its sole shareholder.Evergreen's tax basis in the land is $50,000.Assuming sufficient earnings and profits, the amount of dividend reported by the shareholder is $200,000.

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Definitions:

Management by Exception

A management strategy where only significant deviations from planned results are brought to the attention of management.

Budget Report

A financial document that compares planned financial outcomes with the actual figures, helping in managing resources and achieving financial objectives.

Planned Objectives

The specific goals set by a business or organization to guide its operations and strategic planning.

Budget Difference

The variance between the budgeted or planned amount of expense or revenue, and the actual amount incurred or earned.