Rose,an S Corporation,distributes Land to Walter,its Only Shareholder

question 53

True/False

Rose,an S corporation,distributes land to Walter,its only shareholder.Rose's adjusted basis for the land is $100,000,and the fair market value is $175,000.Rose has a recognized gain of $75,000 ($175,000 - $100,000)on the distribution.Walter's adjusted basis for the land is the fair market value of $175,000.

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Definitions:

Mutualism

A type of symbiotic relationship between organisms of different species where both parties benefit from the interaction.

Elaiosomes

Nutrient-rich structures attached to the seeds of some plant species, attracting ants which aid in seed dispersal.

Ants

Social insects known for their structured colony life, ability to work together, and comprising thousands of species that inhabit almost every landmass on Earth.

Most Recent Common Ancestor

The immediate forebear from whom every organism within a group directly originates.