Posey Corporation Distributes Land with a Fair Market Value of $20,000

question 28

Multiple Choice

Posey Corporation distributes land with a fair market value of $20,000 and a basis of $12,000 to Brock, a shareholder. Posey's earnings and profits are $125,000. What must Brock report as income from the property distribution?

• A)$- 0 -
• B)$8,000
• C)$12,000
• D)$20,000

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Definitions:

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