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What are amount and character of the income debra recognize

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On May 10 of the current? year, Addison Corporation distributes to its shareholder Debra $14,000 in cash and land? (a capital? asset) having a $90,000 FMV. The land has a $14,000 adjusted basis? (for both taxable income and? E&aP purposes) and is subject to a $95,000 ?mortgage, which Debra assumes. Addison has an? E&P balance exceeding the amount distributed and is subject to a 21?% corporate tax rate.

Problem a. What are the amount and character of the income Debra recognizes as a result of the? distribution?

Problem b. What is Debra?'s basis in the? land?

Problem c. What are the amount and character of Addison?'s gain or loss as a result of the? distribution?

Reference no: EM132859256

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