Catamount company had current and accumulated e& p of $500,000 on december 31, 20x3. on december 31, the company made a distribution of land to its sole shareholder, caroline west. the land's fair market value was $200,000 and its tax and e& p basis to catamount was $250,000. the tax consequences of the distribution to catamount in 20x3 would be: .

Here no loss would be recognized by by the Catamount company but there will be an decrease in E&P of $250,000.

Explanation:

Given information - Accumulated E&P ( EARNINGS AND PROFITS ) $500,000

                                Land distributed - $200,000 ( market value )

                                E&P basis was $250,000

Here the company is giving its shareholder a land and since the earnings and profits here are exceeding the distribution amount , no loss would be recognized and there will be reduction in earning and profits of the company of $250,000.

answer; (10%) commission;

answerchemical property;