Property dividend to its shareholders


Robin Corporation distributes furniture (basis of $40,000; fair market value of $50,000) as a property dividend to its shareholders. The furniture is subject to a liability of $55,000. Robin Corporation recognizes gain of:

a. $55,000.

b. $15,000.

c. $10,000.

d. $0.

e. None of the above.

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Accounting Basics: Property dividend to its shareholders
Reference No:- TGS057676

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