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Business, 08.10.2019 17:10 labrandonanderson00

Paladin corporation had current and accumulated e& p of $500,000 at december 31, 20x3. on december 31, the company made a distribution of land to its sole shareholder, maria mendez. the land's fair market value was $200,000 and its tax and e& p basis to paladin was $250,000. maria assumed a liability of $25,000 attached to the land. the tax consequences of the distribution to paladin in 20x3 would be:
a) no loss recognized and a reduction in e& p of $225,000b) no loss recognized and a reduction in e& p of $200,000c) $50,000 loss recognized and a reduction in e& p of $200,000d) $50,000 loss recognized and a reduction in e& p of $225,000

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