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T Inc. distributed land worth $21,000 (basis $18,000) used…

T Inc. distributed land worth...
T Inc. distributed land worth $21,000 (basis $18,000) used in its business to its sole shareholder, Z Corp. The land was
subject to a mortgage of $5,000. Assuming that T has substantial E & P, Z's dividend and basis for the property will be how much?Dividend: $16,000; Basis: $16,000
Dividend: $16,000; Basis: $21,000
Dividend: $21,000; Basis: $16,000
Dividend: $21,000; Basis: $21,000
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3/24/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
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$16,000 and $16,000.
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified
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Sorry, dividend $16,000 and $21,000 basis. The liability does not reduce basis
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