Samantha Owns Stock in Pigeon Corporation (Basis of $80,000) as an Investment.Pigeon

question 127

Multiple Choice

Samantha owns stock in Pigeon Corporation (basis of $80,000) as an investment.Pigeon distributes property (fair market value of $300,000; basis of $150,000) to her during the year.Pigeon has current E & P of $20,000 and accumulated E & P of $80,000 and makes no other distributions during the year.What is Samantha's capital gain on the distribution?

• A)$0.
• B)$80,000.
• C)$120,000.
• D)$150,000.
• E)None of the above.

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