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Shazam Corporation had book income in 2017 of $100,000. At the end of 2017, Shazam...

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Accounting

Shazam Corporation had book income in 2017 of $100,000. At the end of 2017, Shazam distributes two separate properties it owned to its sole owner, Sheldon. Property number 1 had basis of $30,000 and a fair market value at the date of distribution of $20,000. Property number 2 also had basis of $25,000 but a fair market value of $40,000. How much taxable income will Shazam and Sheldon each have due to these distributions?

a. $0 and $0

b. $15,000 and $55,000

c. $15,000 and $60,000

d. $5,000 and $60,000

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