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:

Lower In Status

A relative position in a social hierarchy that is considered less prestigious, powerful, or important compared to others.

Respect

Admiration or high regard for someone or something, often due to their abilities, qualities, or achievements.

Sexist Bias

Prejudgment or discrimination based on a person's sex or gender, often favoring one gender over another.

Social Class Biases

Prejudicial attitudes and discriminatory actions based on differences in social hierarchies, wealth, education, or lineage.