Question: It is now 2016. Harmonica, Inc., a calendar year S corporation, is owned equally by three shareholders: August, April, and May. The corporation owns equipment

It is now 2016. Harmonica, Inc., a calendar year S corporation, is owned equally by three shareholders: August, April, and May. The corporation owns equipment that was purchased for $112,000 four years ago. On November 13 of the current year, when the equipment is worth $145,000, it is distributed to August. Assume that August's basis in the S corporation stock is $160,000 immediately betore the distribution. How much gain will be attributed to August as a result of the distribution? Select one: a. $0 b. $11,000 c. $25,000 d. $33,000

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