Question y 13 points) Blue Corporation, a C Corporation, has E&P of $300,000. Blue Corporation...
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Question y 13 points) Blue Corporation, a C Corporation, has E&P of $300,000. Blue Corporation distributes land to its sole shareholder Steve. The land had a FMV of $100,000 and basis of $60,000. As a result of the distribution, Steve has: a) a taxable dividend of $0 and a reduction of his basis in Blue Corporation stock of $100,000 b) a taxable dividend of $60,000 and a reduction of his basis in Blue Corporation stock of $$60,000. Oc) a taxable dividend of $60,000 and no impact to his basis in Blue Corporation Stock d) a taxable dividend of $100,000 and a reduction of his basis in Blue Corporation stock of $100,000. O e) a taxable dividend of $100,000 and no impact to his basis in Blue Corporation Stock
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