Question: Quinlan has ample E & P to cover any distributions made during the year. One distribution made to a shareholder consists of property with an

Quinlan has ample E & P to cover any distributions made during the year. One distribution made to a shareholder consists of property with an adjusted basis of $1,489,800 and a fair market value of $893,880.

What are the tax consequences of this distribution to Quinlan?

As a result of the distribution, Quinlan Corporation has a realized --- of $ --- of which $--- is recognized. The shareholder received property with a basis of $----

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