Davison, Inc. distributes land to Carrie, a shareholder that owns 83% of the corporation's outstanding...
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Davison, Inc. distributes land to Carrie, a shareholder that owns of the corporation's outstanding stock. The land has a FMV of $ and basis of $ Carrie also assumes the mortgage on the land of $ as of the distribution date. As a result of this distribution, what will be the change in Davison Inc.s E& P balance assuming it is $ prior to the distribution? Assume a corporate tax rate of Group of answer choices $ decrease $ decrease $ decrease $ decrease $ increase
Davison, Inc. distributes land to Carrie, a shareholder that owns of the corporation's outstanding stock. The land has a FMV of $ and basis of $ Carrie also assumes the mortgage on the land of $ as of the distribution date. As a result of this distribution, what will be the change in Davison Inc.s E& P balance assuming it is $ prior to the distribution? Assume a corporate tax rate of
Group of answer choices
$ decrease
$ decrease
$ decrease
$ decrease
$ increase
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