Response to the following problem:
Bebop, Inc. distributes investment property to its shareholders. The property was acquired five years ago and has a basis of $50,000 and a market value of $80,000.
a. How will this distribution be treated for tax purposes at both the corporate and shareholder levels if Bebop is a C corporation?
b. If Bebop, Inc. was an S corporation, how would your answer to Part a. differ?
c. If the company was a partnership, how would the distribution be treated for tax purposes at the partnership and partner levels?