Wills Corporation, which has accumulated a current E&P totaling $65,000, distributes land to its Mike Johnson, its sole shareholder. The land has an FMV of $55,000 and an adjusted basis of $95,000. The shareholder assumes a $15,000 liability associated with the land. Mike's basis in the stock before the distribution was $10,000. What are the consequences of the distribution to the shareholder?

Answer rating: 100% (QA)

Answer Amount of distribution 110000 Character of distribution 10... View the full answer