Question: How much gain does SK recognize because of this distribution? SK Corporation distributes land as a property dividend to its shareholders. The land has a

How much gain does SK recognize because of this distribution?

SK Corporation distributes land as a property dividend to its shareholders. The land has a fair market value of $50,000 and adjusted basis of $40,000. The land is subject to a $65,000 liability that is assumed by the shareholders.

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