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.

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.