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...

70.2K

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 a 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 Raisin recognize as a result of this transaction? $28,000 $84,000 $56,000 $0

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

Accounting
1.2K views

1.Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,800...

Biology
1.2K views

Which of the following processes occurs in both aerobic cellular respiration and fermentation A B...

Biology
1.2K views

You are suffering from Streptococcus throat infection strep throat You share the following with the...

Basic Math
1.2K views

graph below AD1 shows where the economy was operating before fiscal policy was implemented and...

Basic Math
1.2K views

Which description lists Earth's layers from most superficial to deepest?a Lithosphere, lower mantle, asthenosphere, outer...

Basic Math
1.2K views

Under which angle conditions could a triangle exist? Check all that apply.3 acute angles2 acute...

Statistics
1.2K views

A modified box and whisker plot is a box and whisker plot that uses symbols...

Accounting
1.2K views

As the manager of the a business , why is it important to make sure...

Accounting
1.2K views

Q.2 Wadeod Manufacturing Co. uses perpetual inventory system while recording their inventory. They incurred the...

Accounting
1.2K views

Cul es la perspectiva de Shelby Steele sobre la accin afirmativa? Ests de acuerdo o...

Finance
1.2K views

Exhibit 6.11 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Asset 1 E(R1) = 0.28...

Finance
1.2K views

You are serving on a jury. A plaintiff is suing the city for injuries sustained...