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Fox Corp. distributed land worth $50,000 to its sole

shareholder. The land had a...
Fox Corp. distributed land worth $50,000 to its sole shareholder. The land had a basis of $40,000 and was subject to a mortgage of $20,000. Fox's E & P is $100,000 before any adjustments for the distribution. How much is the net decrease to Fox's E & P?$20,000
$30,000
$40,000
$50,000
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Answered in 5 minutes by:
3/24/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,038
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Reduce E&P by the FMV of the Property less liabilities on property. $50,000 less $20,000 = $30,000.

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,038
Experience: Adjunct Professor
Verified
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