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The P Corporation sells the company vehicles to one of the shareholders who owns 70%...

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Accounting

The P Corporation sells the company vehicles to one of the shareholders who owns 70% of the value of the outstanding stock. The P Corporations cost basis in the vehicle is $16300. However,the board agrees to sell the vehicles to the shareholder for $10400, which is the comparable fair market value confirmed by a qualified appraisal. Calculate the right of offset, if any.

$0 $10400 $16300 $5900

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