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...

60.1K

Verified Solution

Question

Accounting

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, Raisins basis in his shares was $3,000 and Prunes basis in her shares was $1,000. During the current year, Dried Fruit Corp. earned $18,000 of net income from operations. Raisins share was $6,000; Prunes share was $12,000. On December 31st, Dried Fruit Corp. distributed Grapeacre (real property) having a fair market value of $6,000, and a basis of $4,000, to Raisin and Plumacre (real property) having a fair market value of $12,000 and a basis of $11,000, to Prune. How much gain does Prune recognize as a result of this transaction?

Group of answer choices

$2,000

$1,000

$0

$3,000

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Which of the following is part of the provisions of the Massachusetts Constitution Deems absurd...

Calculus
1.2K views

Determine whether the lines L? and L? are parallel, skew, or intersecting.L?: x = 9...

Statistics
1.2K views

Find the probability and interpret the results If convenient use technology to find the probability...

Accounting
1.2K views

Physical Units Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and...

Basic Math
1.2K views

Find the coordinates of the vertex of the following parabola algebraically. Write your answer as...

Algebra
1.2K views

Chapters 14 15 16 i 02 27 15 Calculate the average daily balance assume a...

Algebra
1.2K views

Determine if the function e is an eigenfunction of the operator x 2 2 2...

Algebra
1.2K views

Choose h and k such that the system has a no solution b a unique...

Accounting
1.2K views

A used machine with a purchase price of $43,991.00, requiring an overhaul costing $8,807.00, installation...

Accounting
1.2K views

Need answers with formulas in excel ITEM SET: ABC ...

Accounting
1.2K views

10 upvotes for correct answer!!! eargent Task 3 - Demand Forecasting Data...

Accounting
1.2K views

Sunland Corporation reported the following for 2025: net sales $1,238,000, cost of goods sold $733,900,...