Hogg Corporation Distributes $30,000 to Its Sole Shareholder, Ima

question 50

Multiple Choice

Hogg Corporation distributes $30,000 to its sole shareholder, Ima. At the time of the distribution, Hogg's E&P is $14,000 and Ima's basis in her stock is $10,000. Ima's gain from this transaction is a

• A)$6,000 capital gain.
• B)$14,000 capital gain.
• C)$20,000 capital gain.
• D)$30,000 capital gain.

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