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:

Monocot

A group of flowering plants characterized by having one cotyledon (seed leaf), parallel leaf veins, and flower parts usually in multiples of three.

Eudicot

A significant classification of bloom-bearing plants known for possessing dual seed leaves, referred to as cotyledons, during the sprouting process.

Apomixis

Apomixis is a form of asexual reproduction that allows plants to produce seeds without fertilization, leading to offspring genetically identical to the parent.

Scarification

A process of weakening the outer coat of seeds to encourage germination, can be chemical, mechanical, or thermal.