Edwards,Inc

question 104

Multiple Choice

Edwards,Inc.,an S corporation,distributes a machine to Mary,a majority shareholder.This asset has an adjusted basis of $30,000,but a fair market value of $80,000.Accumulated cost recovery deductions amount to $25,000.Edwards recognizes a gain of:

• A)$0.
• B)$25,000.
• C)$30,000.
• D)$50,000.
• E)Some other amount.

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