Quinlan has ample E & P to cover any distributions made during the year. One distribution made to a shareholder consists of property with an adjusted basis of $150,000 and a fair market value of $90,000. What are the tax consequences of this distribution to Quinlan?

Since the air market value of the property is $90,000, it implies that the shareholder received the property distributed with a basis of of the fair value of $90,000, the company then suffered a loss of $60,000 of which zero amount is recognized.

Explanation:

Loss on distribution = Fair market value - Adjusted basis

                                 = $90,000 - $150,000

Loss on distribution = $60,000

Since the air market value of the property is $90,000, it implies that the shareholder received the property distributed with a basis of of the fair value of $90,000, the company then suffered a loss of $60,000 of which zero amount is recognized.

answer; ///blank(1); security; blank(2); freedom; good luck

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know