Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dried fruit corp. has had a valid s corp election

Dried Fruit Corp. has had a valid S Corp election in effect at all times...

80.2K

Verified Solution

Question

Accounting

Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisins basis in his shares was $96,000 and Prunes basis in her shares was $32,000. During the current year, Dried Fruit Corp. earned $576,000 of net income from operations. Raisins share was $192,000; Prunes share was $384,000. On December 31st, Dried Fruit Corp. distributed Grapeacre (real property) having a fair market value of $192,000, and a basis of $128,000, to Raisin and Plumacre (real property) having a fair market value of $384,000 and a basis of $352,000, to Prune. How much gain does Prune recognize as a result of this transaction?

$96,000

$0

$64,000

$32,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A special chessboard is 2 squares wide and n squares long. Using n dominoes that are...

Advance Math
Q

Prepare a two-page project proposal dealing with electrical engineering technology. You should research the field of...

Electrical Engineering
Q

I see theres solution posted but its done in Mathmatica format. Can someone show me the solution...

Electrical Engineering
Q

organizational dynamics Wal-mart is the organization that will be used for this analysis An analysis of the decision making processes...

General Management
Q

Fetch isnone of thesethe circular pattern made by water particles when a wave passesthe distance...

Biology
Q

A uniform cylindrical rod of length L cross section A and Young s modulus Y...

Physics
Q

1 A circle has a radius of 12 Find the area of the sector whose...

Geometry
Q

True or False: If the unpaid balance is $2,980 and the interest rate is 11%,...

Basic Math
Q

The student body of 60 students wants to elect a president vice president secretary and...

Algebra
Q

Find the area of the given figure 10 cm 4 cm 4 cm 2 cm...

Algebra
Q

Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and...

Accounting
Q

Consider the following bank reconciliation, general ledger, and bank statement for RJ Cosmetics. \table[[\table[[RJ...

Accounting