Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dried fruit corp. has had a valid s corp election

Dried Fruit Corp. has had a valid S Corp election in effect at all times...

80.2K

Verified Solution

Question

Accounting

image

Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $84,000 and Prune's basis in her shares was $28,000. During the current year, Dried Fruit Corp. earned $504,000 of net income from operations. Raisin's share was $168,000; Prune's share was $336,000. On December 31st, Dried Fruit Corp. distributed Grapeacre (real property) having a fair market value of $168,000, and a basis of $112,000, to Raisin and Plumacre (real property) having a fair market value of $336,000 and a basis of $308,000, to Prune. How much gain does Prune recognize as a result of this transaction? O $0 $56,000 $84,000 O $28,000

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!
Become a Member

Other questions asked by students

Q

Talia’s Tutus is considering purchasing a new sewing machine. The old machine it has right now...

Finance
Q

The rental car agency has 30 cars on the lot. 10 are in great shape, 16...

Statistics
Q

Evaluate the integral 5 32 fa 26 11 de by making the substitution u x...

Calculus
Q

Tarot cards are used for telling fortunes and in a reading the arrangement of the...

Calculus
Q

Use Newton s method with the specified initial approximation x to find x3 the third...

Calculus
Q

Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based...

Accounting
Q

Shankar Company uses a periodic system to record inventory transactions. The company purchases inventory on...

Accounting
Q

Mad Hatter plans to discontinue a department with a contribution margin of $24,000 and overhead...

Accounting
Q

Sunland Manufacturing incurs unit costs of $7.00 ($5.00 variable and $2.00 fixed) in making a...

Accounting
Q

You are working on the BB audit and have been asked to help your manager...

Accounting
Q

The rules governing New Jersey real estate licensees require that a comparable market valpas cu...

Finance
Q

An MNC with receivables in Japanese yen sell yen forward to hedge its exposure to...

Finance