Luke receives a property distribution from Vader Enterprises, Inc. (he inherited the corporation from his...
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Accounting
Luke receives a property distribution from Vader Enterprises, Inc. (he inherited the corporation from his father). The property has a FMV of $625,000 and the corporation had a basis in it of $715,000. Vader has current E&P of $450,000 and accumulated E&P of ($200,000). At the time of the distribution, Luke had a basis of $375,000 in Vader.
Assume the same facts as above, except that its a liquidating distribution, Lukes the sole shareholder, and the propertys not disqualified property.
What are the tax consequences to Vader? (4 points)
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