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:

Love Potion

A mythical or fictional substance believed to cause the person who consumes it to fall deeply in love with someone else.

Defensive Aggression

Behavior intended to protect oneself from harm or threat, often manifested through physical or verbal actions.

Passionate Love

An intense emotional state characterized by a powerful longing for and absorption in another person.

Love At First Sight

The phenomenon of feeling an instant, extreme, and ultimately long-lasting romantic attraction for a stranger upon the first encounter.