[jeff]

Welcome to the Q2 2016 CPA Exam Study Group for REG.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[CPA2BEE]

@Bear is correct. @Just3 what you are saying is correct as long as the distribution is cash. If property is distributed in excess of partner basis, no gain is recognized and basis is reduced to zero. For partnerships, cash distributions in excess of basis cause gains, property distributions in excess do not

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[csvirk]

back to CPA2Bee question. I read the question wrong as which statement is correct. Question is asking opposite. :\

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[CPA2BEE]

Happens to me all the time!

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Just3Letters]

Oh got ya! Not confused anymore lol

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[CPA2BEE]

ABC Corporation distributes land with a fair market value (FMV) of $100,000 (adjusted basis of $75,000) to Anna when the corporation's E&P is $350,000. Anna is the sole shareholder. What basis does Anna take in the land and what amount of gain does ABC Corporation recognize, respectively, as a result of this nonliquidating property distribution?

A.
$75,000; $0

B.
$100,000; $0

C.
$25,000; $25,000

D.
$100,000; $25,000

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[csvirk]

is it D.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Bear-Bear]

B, right?

[Just3Letters]

Yeah definitely D

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Bear-Bear]

🙁

[Just3Letters]

*pressing refresh until we get answer*

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[CPA2BEE]

It is D, nice!!!

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Bear-Bear]

Argh! Can someone ‘splain when the company does and doesn't recognize gains on property distributions?

[CPA2BEE]

@Bear remember when a Corp distributes property to shareholders it is treated as a sale at FMV, gains are recorded

FAR - 80
AUD - 82
BEC - 80
REG - 85

ETHICS - 90
EXPERIENCE - COMPLETE
Application for California license mailed 8/4/2016

[Just3Letters]

@Bear, from what limited information I know..There are 2 situations,

1. Property dividend (liquidating and non-liquidating) is recognized gain for any appreciation in the asset (FMV>Basis)
2. To extent cash received is greater than basis, you recognize a gain

FAR- 81
REG- 81
BEC- Aug 22, 2016
AUD- TBD

[Spartans92]

I say D as well.

BEC- PASS

[Author]

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