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Author Question: Lafayette Corporation distributes $80,000 in cash along with land having a $40,000 adjusted basis ... (Read 79 times)

michelleunicorn

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on: Sep 13, 2020

Question 1

If a corporation has no E&P, a distribution is ordinary income to the extent of the shareholder's basis with any excess treated as capital gain.
◦ true
◦ false

Question 2

Lafayette Corporation distributes $80,000 in cash along with land having a $40,000 adjusted basis and a $70,000 FMV to its shareholder, Gus.  The corporation has accumulated substantial earnings and profits.
a. What are the tax consequences to Lafayette Corporation?
b. What are the tax consequences to the shareholder?
c. What is the shareholder's basis in the land?
Federal Taxation 2017 Individuals ¦ Pope, Rupert, Anderson ¦ 30th Edition
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Marked as best answer by michelleunicorn on Sep 13, 2020

djofnc

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Reply #1 on: Sep 13, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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michelleunicorn

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Reply 2 on: Sep 13, 2020
Great answer, keep it coming :)

laurnthompson

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Reply 3 on: Yesterday
Excellent

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