ESSAY. Write your answer in the space provided or on a separate sheet of paper. 11) Lafayette Corporation distributes $80,000 in cash along with land having a $40,000 adjusted basis and a $70,000 FMV to its sharehoider, Gus- The corporation has accumulated substantial earnings and profits. 3. What are the tax consequences to Lafayette Corporation? b. What are the tax consequences to the shareholder? c. What is the sharehoider's basis in the land? 12) Marisa has a 75% interest in the MM Partnership. She sells the partnership a building used in her business for $150,000. Her adjusted basis of the building was $120000. Marisa had used straightline depreciation. The partnership will use the building for its offices. What are the tax consequences to Marisa of this transaction