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Samantha owns stock in Pigeon Corporation (basis o...

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Samantha owns stock in Pigeon Corporation (basis of $80,000) as an investment. Pigeon dishibutes property (fair market value of $300,000; basis of $150,000) to her during the year. Pigeon has current E & P of $20,000 and accumulated E & P of $80,000 and makes no other dishibutions during the year. What is Samantha's capital gain on the distribution? a. $0. b. $80,000. c. $120,000. d. $150,000. e. None of the above. 2. Robin Corporation dishibutes furniture (basis of $40,000; fair market value of $50,000) as a property dividend to its shareholders. The furniture is subject to a liability of $55,000. Robin Corporation recognizes gain of: a. $55,000. b. $15,000. c. $10,000. d. $0. e. None of the above.

 

Paper#6038 | Written in 18-Jul-2015

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