What is samantha capital gain on the distribution


Samantha owns stock in Pigeon Corporation (basis of $80,000) as an investment. Pigeon distributes property (fair market value of $300,000; basis of $150,000) to her during the year. Pigeon has current E & P of $20,000 and accumulated E & P of $80,000 and makes no other distributions during the year. What is Samantha's capital gain on the distribution?

a. $0.

b. $80,000.

c. $120,000.

d. $150,000.

e. None of the above.

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Accounting Basics: What is samantha capital gain on the distribution
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