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Bryce, an individual, owns stock in Phillies Corporation (basis of $300,000) as an investment. Phillies...

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Accounting

Bryce, an individual, owns stock in Phillies Corporation (basis of $300,000) as an investment. Phillies distributes property (fair market value of $400,000; basis of $125,000) to Bryce on 12/31 of the current year. Phillies has current E &P of $125,000(which INCLUDES the E & P gain resulting from that $400,000 property distribution), accumulated E &P of $200,000, and makes no other distributions during the year. What, if any, is Bryces capital gain on the distribution?
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Bryce, an individual, owns stock in Phillies Corporation (basis of $300,000) as an investment. Phillies distributes property (fair market value of $400,000; basis of $125,000) to Bryce on 12/31 of the current year. Phillies has current E &P of $125,000(which INCLUDES the E & P gain resulting from that $400,000 property distribution), accumulated E &P of $200,000, and makes no other distributions during the year. What, if any, is Bryces capital gain on the distribution?
$75,000
$0
$100,000
$275,000

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