XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $80,000 Fair Market Value of $200, 000 to sole shareholder-Johnson. The property is subject to Liability of $50,000 which shareholder assumes (A) (B) How much dividend Johnson report What is his basis in the machinery What is the effect on corporation's earnings and E & P
XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $80,000 Fair Market Value of $200, 000 to sole shareholder-Johnson. The property is subject to Liability of $50,000 which shareholder assumes (A) (B) How much dividend Johnson report What is his basis in the machinery What is the effect on corporation's earnings and E & P
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 30CE
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XYZ corporation (E & P $1,000,000) distributes machinery, adjusted basis $80,000
Fair Market Value of $200, 000 to sole shareholder-Johnson. The property is subject to
Liability of $50,000 which shareholder assumes
(A)
(B)
How much dividend Johnson report
What is his basis in the machinery
What is the effect on corporation's earnings and E & P
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