An S Corporation Distributes Land to Its Shareholders

question 98

Multiple Choice

An S corporation distributes land to its shareholders. The land has a $60,000 basis and a $90,000 FMV. The basis of the land to the shareholders is

• A)$0.
• B)$30,000.
• C)$60,000.
• D)$90,000.

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Definitions:

Nonparametric Test

Statistical tests that do not assume a particular distribution of the data, useful for ordinal or nominal data.

Ordinal Data

Data that can be categorized or ranked in order but does not quantitatively measure differences between categories.

Normally Distributed Populations

Populations that follow a normal distribution, characterized by a bell-shaped curve.

Z-Test Approximation

A statistical test used to determine if there are significant differences between means with known variance and a large sample size.