Cronin Co. distributed $6,000 cash and equipment with a fair market value of $12,000 to...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Cronin Co. distributed $6,000 cash and equipment with a fair market value of $12,000 to Ginny, its sole shareholder. The corporation had an adjusted tax basis of $8,000 in the distributed equipment and an attached liability of $3,000 (Ginny assumes the liability). Cronin has current E\&P of $40,000 and no accumulated E\&P. What is Ginny's initial tax basis in the distributed equipment? Select one: A. $12,000 B. $0 C. $9,000 D. $5,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
