Corporation K distributed an airplane to its sole shareholder, Mr. P. On the date of...

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Accounting

Corporation K distributed an airplane to its sole shareholder, Mr. P. On the date of distribution, the airplane had a fair market value of $50,000 and an adjusted basis to Corporation K of $12,000. What is Corporation Ks recognized gain on the distribution?
A.
$50,000
B.
$38,000
C.
$12,000
D.
$0

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