Tara Corporation has current EXP of

$320,000. During the year, it distributes numerous items to its sole shareholder, Anne. Indicate the effects of the distribution to Anne and Tara Corporation for each item distributed.

a. Inventory with a fair market value of

$30,000 and an adjusted basis of $20,000.

b. Truck used in business with a fair market value of $17,000 and an adjusted basis of $9,100. The truck’s original cost was $22,000.

c. Land with a fair market value of

$210,000 that was held as an investment and was acquired in five years ago for

$150,000,

d. Land with a fair market value of

$105,000 that was used in the business.

The land was acquired five years ago for $50,000 and had an outstanding mortgage of $30,000.

e. Installment obligation having a face amount of $43,000 and an adjusted basis of $29,000. The installment obligation was obtained when Tara sold ordinary income property.