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:

Correlational Research

A type of nonexperimental research where researchers measure two variables and assess the statistical relationship (correlation) between them with no manipulation of variables.

Correlational Statistics

Statistics designed to measure relationships between variables.

Sample Size

The number of observations or data points in a sample drawn from a population for analysis.

P Value

The p value is a measure indicating the probability that the observed data would occur by chance if the null hypothesis were true.