ABC Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjusted basis of $205,000, and is subject to a liability of $220,000. Current E & P is $500,000. With respect to the distribution, which of the following statements is correct? ABC has a gain of $15,000 and Andre has dividend income of $350,000 ABC has a gain of $145,000 and Andre's basis in the distributed property is $130,000. ABC has a gain of $130,000 and Andre's basis in the distributed property is $350,000 ABC has a gain of $145,000 and Andre has dividend income of $130,000 None of the above
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “ABC Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjusted basis of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A corporation has a balance sheet that showed Net fixed assets of $750,000 at the beginning of the year. It ended the year with a balance sheet that showed Net fixed assets of $900,000.
Answers (1)
Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on January 1. The remaining $400,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1.
Answers (1)
On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $665, and the cost of unit B was $580. On April 30, Robert LLC had not sold the inventory.
Answers (1)
The auditors are concerned about transactions that have been recorded in the journals (and subsequently in the ledgers) that are not valid-that is, a transaction is recorded, but it did not actually occur (e. g., a fraudulent overstatement of sales).
Answers (1)
SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2019.
Answers (1)
New Questions in Business
Which of the following is a reason for product failure in a firm? Group of answer choices Resorting to radical innovation with the new products process Avoiding the use of the ready - fire - aim approach in the product development process Chasing a
Answers (1)
Which component is considered a steady income while planning for savings in your personal budget? A. bonus B. salary C. income from dividend D. other variable income
Answers (2)
Consider the demand for cigarettes. Suppose the government decreases the price of cigarettes by lowering cigarette taxes.
Answers (1)
What time does stock market open and close?
Answers (1)
Your coworker Edison is really concerned about a project that he has just been assigned. He is in charge of analyzing and determining conditions in the market for televisions from an extensive sales report.
Answers (1)