A corporation distributes land with a FMV of $85,000 (basis $50,000).The land has a mortgage of $95,000 assumed by the shareholder.Gain to the corporation is

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The gain to the corporation is calculated as the excess of the mortgage assumed by the shareholder ($95,000) over the corporation's basis in the land ($50,000), resulting in a gain of $45,000.

A Corporation Distributes Land with a FMV of $85,000 (Basis