Jane Receives a Nonliquidating Distribution of Land with a Fair $\quad$

question 50

Short Answer

Jane receives a nonliquidating distribution of land with a fair market value of $30,000 and a basis of $18,000 from Strickland Corporation,an S corporation.Jane's basis in the stock is $46,000.What must Jane and Strickland report as income from the property distribution?
$\quad$$\underline { Jane}$$\quad$$\underline { Strickland}$
a. $\$ - 0 - \quad \$ - 0 -$
b. $\$ 12,000 \quad\$ - 0 -$
c. $\$ - 0$ - $\quad\$ 12,000$
d. $\$ 12,000 \quad \$ 12,000$

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Definitions:

Stearic Acid

A saturated fatty acid commonly found in animal and vegetable fats, used in various manufacturing processes.

Saponification

A chemical reaction involving the hydrolysis of esters in fats with alkali, resulting in the formation of soap and glycerol.

Tristearin

A triglyceride derived from glycerol and three units of stearic acid, commonly found in fat and oils.

Triolein

A triglyceride derived from glycerol and three oleic acid molecules, predominantly found in vegetable oils.