Multiple Choice
Robin Corporation distributes furniture (basis of $40,000; fair market value of $50,000) as a property dividend to its shareholders. The furniture is subject to a liability of $55,000. Robin Corporation recognizes gain of:
A) $55,000.
B) $15,000.
C) $10,000.
D) $0.
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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