Puffin Corporation Makes a Property Distribution to Its Sole Shareholder

question 140

Multiple Choice

Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $30,000? fair market value of $20,000) that is subject to a $6,000 liability which Bonnie assumes. Puffin has no accumulated E & P and $30,000 of current E & P from other sources during the year. What is Puffin's E & P after taking into account the distribution of the car?

• A) $4,000
• B) $6,000
• C) $10,000
• D) $14,000
• E) None of the above

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Definitions:

Oedipus Complex

A psychoanalytic theory that describes a child's feelings of desire for their opposite-sex parent and jealousy toward their same-sex parent.

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, developed by Sigmund Freud.

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in decision making, planning, problem-solving, self-control, and moderating social behavior.

Amygdala

A region of the brain involved in emotional processes, including fear and pleasure responses.