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Rose,an S Corporation,distributes Land to Walter,its Only Shareholder

Question 93

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Rose,an S corporation,distributes land to Walter,its only shareholder.Rose's adjusted basis for the land is $100,000,and the fair market value is $225,000.Rose has a recognized gain of $125,000 ($225,000 - $100,000)on the distribution.Walter's adjusted basis for the land is the fair market value of $225,000.

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