A corporation distributes land and the related liability in a nonliquidating distribution to a shareholder....
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Accounting
A corporation distributes land and the related liability in a nonliquidating distribution to a shareholder. The land (a capital asset) has an adjusted basis of $50,000, an FMV of $75,000 and is subject to a mortgage of $80,000. The corporation must recognize
A) a $25,000 capital loss.
B) a $30,000 capital gain.
C) a $80,000 capital gain.
D) no gain or loss.
Please provide an explanation, thank you!
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