Fred Is the Sole Shareholder of an S Corporation in Fort

Multiple Choice

Fred is the sole shareholder of an S corporation in Fort Deposit, Alabama. At a time when his stock basis is $20,000, the corporation distributes appreciated property worth $100,000 (basis of $20,000) . Fred's taxable gain is:

A) $-0-.
B) $10,000.
C) $80,000.
D) $100,000.