Jacqueline Owns Stock in Dove Corporation (Basis of $40,000)as an Investment.Dove

question 108

Multiple Choice

Jacqueline owns stock in Dove Corporation (basis of $40,000) as an investment.Dove distributes property (fair market value of $150,000;basis of $75,000) to her during the year.Dove has current E & P of $10,000 and accumulated E & P of $40,000 and makes no other distributions during the year.What is Jacqueline's capital gain on the distribution?

• A)$0.
• B)$40,000.
• C)$60,000.
• D)$75,000.
• E)None of the above.

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