Southern Corp., an S corporation, has no corporate E&P from years as a C corp. At...

 

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Southern Corp., an S corporation, has no corporate E&P from years as a C corp. At the end of the year, it distributes a baseball court to its 50% shareholder, Jack, in an operating distribution. The fair market value of the court is $80,000, and its tax basis is $50,000. Mr. Jack's basis in his stock is $15,000. A. How much gain (loss) does Mr. Jack recognize as a result of the distribution (there may be more than one gain/loss recognized or none)? B. What is Mr. Jack's basis in his stock after the distribution? C. What is Mr. Jack's basis in the baseball court? Southern Corp., an S corporation, has no corporate E&P from years as a C corp. At the end of the year, it distributes a baseball court to its 50% shareholder, Jack, in an operating distribution. The fair market value of the court is $80,000, and its tax basis is $50,000. Mr. Jack's basis in his stock is $15,000. A. How much gain (loss) does Mr. Jack recognize as a result of the distribution (there may be more than one gain/loss recognized or none)? B. What is Mr. Jack's basis in his stock after the distribution? C. What is Mr. Jack's basis in the baseball court?