Question: During 2 0 2 3 , DEXTER Corporation ( an S corporation since its inception in 2 0 1 9 ) distributed a parcel of

During

2023,

DEXTER Corporation

(

an S corporation since its inception in

2019)

distributed a parcel of land to its sole shareholder, Fred. The fair market value of the land at the time of the distribution was $

80, 000

and DEXTER stock was $

10, 000 .

What amount of gain, if any, does DEXTER recognize on the distribution? What amount of income, if any, does Fred recognize on the distribution and what is Fred's basis in his DEXTER stock after accounting for the distribution?

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