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The Beta Corporation owns a building with a basis of $20,000 that is subject to a...

The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is Ben’s basis in the building received from Beta in the distribution?

a. $80,000. b. $50,000. c. zero d. $30,000. e. none of the above.

The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is the amount of the distribution to Ben?

a. $80,000. b. $50,000. c. zero. d. $30,000. e. none of the above.

The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What amount of gain or loss does Beta recognize on the distribution?

a. $80,000. b. $60,000. c. $20,000. d. $30,000. e. none of the above.

The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $80,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is the net effect of this transaction on Beta Corporation’s E&P?

a. $60,000 increase. b. $60,000 decrease. c. $20,000 decrease. d. $30,000 increase. e. none of the above.

The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $40,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What amount of gain or loss would Beta recognize on the distribution?

a. $30,000 loss. b. $30,000 gain. c. $50,000 gain. d. $50,000 loss. e. none of the above

The Beta Corporation owns a building with a basis of $20,000 that is subject to a debt of $40,000. The FMV of the building is $50,000. Beta distributes the property in a nonliquidating distribution (along with the debt) to Ben, its sole shareholder. What is Ben’s basis in the distributed property?

a. $30,000. b. zero. c. $40,000. d. $50,000. e. none of the above

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Answer #1

1. (b) 50000

2. (b) 50000

3. (C) zero

4. (d) Loss of 30000

5..(b) Decrease in 60000

6.(b) gain of 30000

7.(d) 50000

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