Snipe Corporation,a Calendar Year Taxpayer,has Total E & P of $800,000.During

question 191

Multiple Choice

Snipe Corporation,a calendar year taxpayer,has total E & P of $800,000.During the current year,Snipe makes property distributions to Tracy (the sole shareholder) as follows:
Adjusted Basis
Fair Market Value
Stock investment
$100,000
$ 90,000
Land
270,000
300,000
​
As a result of these distributions:

• A)Snipe Corporation must recognize a gain of $30,000 and no recognized loss.
• B)Snipe Corporation must recognize a gain of $30,000 and recognize a loss of $10,000.
• C)Snipe Corporation recognizes neither gain nor loss.
• D)Tracy will have a basis of $100,000 in the stock investment and $270,000 in the land.
• E)None of the above.

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Definitions:

Reinforcement

In behaviorism, a consequence that increases the likelihood of a behavior being repeated.

Fixed-ratio

A schedule of reinforcement where a response is only rewarded after a specified number of responses, leading to high and steady response rates.

Variable-ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, making it highly effective in maintaining behavior.

Fixed-interval

A term in operant conditioning referring to a schedule of reinforcement where a response is rewarded only after a specified amount of time has passed.