Digger corporation has 50000 of current and accumulated, Ask an Expert

Accounting

Digger Corporation has $50,000 of current and accumulated E&P. On March 1, Digger distributes land with a $30,000 FMV and a $17,500 adjusted basis to Dave, its sole shareholder. The land is subject to a $5,000 liability which Dave assumes:

a. What is the amount and character of the distribution?

b. What is Dave's basis in the property?

c. When does his holding period for the property begin?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9435004

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