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Unformatted text preview: is more than its adjusted basis, White will not recognize gain on the distribution. ____ 8. The amount of dividend income recognized by a shareholder from a property distribution is always reduced by the amount of liabilities assumed by the shareholder. ____ 9. A constructive dividend must satisfy the legal requirements of a dividend as set forth by applicable state law. Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 10. Jacqueline owns stock in Dove Corporation (basis of $40,000) as an investment. Dove distributes property (fair market value of $150,000; basis of $75,000) to her during the year. Dove has current E & P of $10,000 and accumulated E & P of $40,000 and makes no other distributions during the year. What is Jacqueline’s capital gain on the distribution? a. $0. b. $40,000. c. $60,000. d. $75,000. e. None of the above....
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This note was uploaded on 04/25/2011 for the course AIM 6352 taught by Professor Kennethl.bressler during the Spring '11 term at University of Texas at Dallas, Richardson.
- Spring '11