Tar Heel Corporation Had Current and Accumulated E&P of $500,000

question 31

Multiple Choice

Tar Heel Corporation had current and accumulated E&P of $500,000 at December 31 20X3. On December 31, the company made a distribution of land to its sole shareholder, William Roy. The land's fair market value was $100,000 and its tax and E&P basis to Tar Heel was $25,000. William assumed a mortgage attached to the land of $10,000. The tax consequences of the distribution to William in 20X3 would be:

• A)$100,000 dividend and a tax basis in the land of $100,000.
• B)$100,000 dividend and a tax basis in the land of $90,000.
• C)Dividend of $90,000 and a tax basis in the land of $100,000.
• D)Dividend of $90,000 and a tax basis in the land of $90,000.

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Definitions:

Individual Accountability

The obligation of an individual to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.

Communication Monitoring

The practice of observing and evaluating one's own communication behaviors and strategies to enhance personal effectiveness and interpersonal relations.

Psychometric Assessments

Tools used to measure an individual's mental capabilities and behavioral style.

S.M.A.R.T.S System

No definitive definition, could imply a specific structured methodology aimed at achieving objectives, not a widely recognized acronym.