What is the amount of the distribution


Beane Office Equipment, Inc. distributed $5,000 in cash plus land with an adjusted basis of $90,000 and a fair market value of $75,000 to its sole shareholder. The land was subject to a $40,000 mortgage. What is the amount of the distribution?

a) $5,000

b) $20,000

c) $40,000

d) $95,000

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Accounting Basics: What is the amount of the distribution
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