Rose Corporation distributes land with a fair market value of $70,000 and an adjusted basis...
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Accounting
Rose Corporation distributes land with a fair market value of $70,000 and an adjusted basis of $80,000. The land is subject to a liability of $40,000. What is the total effect of the distribution on the E&P of Rose?
a. Roses E&P does not change.
b. Roses E&P is reduced by $30,000.
c. Roses E&P is reduced by $40,000.
d. Roses E&P is reduced by $70,000.
e. None of the above statements are correct
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