Use these facts to answer questions 24 - 26: Cane Corp., an S corp., distributes...
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Accounting
Use these facts to answer questions 24 - 26: Cane Corp., an S corp., distributes property (adjusted basis of $20,000 and fair market value of $19,000 ) to a shareholder named Todd. Immediately before the distribution, the basis of Todd's investment in Cane Corp. totaled $31,000. What is Todd's basis in his investment after the distribution? a. $31,000. b. $12,000. c. $20,000. d. $11,000. QUESTION 25 What is Todd's basis in the property after the distribution? a. zero. b. $12,000. c. $20,000. d. $19,000. QUESTION 26 What amount of loss would Cane Corp. recognize as a result of the distribution? a. $1,000. b. zero. c. None of the above
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