Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is...
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Accounting
Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $30,000; fair market value of $40,000) that is subject to a $7,000 liability which Bonnie assumes. Puffin has no accumulated E & P and $70,000 of current E & P from other sources during the year. How much dividend should Bonnie report?
a. $4,000
b. $33,000
c. $10,000
d. $34,000
e. None of the above
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