Question: Orange Corporation distributes $ 2 0 0 , 0 0 0 in property to each of its three shareholders: Sandy, Byron, and Fuchsia Corporation.When determining

Orange Corporation distributes $

200, 000

in property to each of its three shareholders: Sandy, Byron, and Fuchsia Corporation.When determining how the distribution is treated for tax purposes by Orange Corporation, classify the following factors as either one that should be "Considered" or one that should "Not considered".a

.

Is the distributed property appreciated or depreciated?b

.

What is the character of the property being distributed?c

.

Is the distributed property secured by debt?d

.

Will the distribution result in a gain to the corporation?e

.

Will the distribution generate a deficit in E & P

?

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