During the year, Hickory Corporation distributed land worth $40,000 (basis $7,000) and equipment worth $10,000 (basis $15,000) to one of its shareholders, R.Due to the distributions, the corporation will report
A)Net income of $28,000 if the distributions are treated as a dividend out of Maple's E&P
B)Net income of $33,000 if the distributions qualify for sale treatment under the basic redemption rules of 302
C)No gain or loss if the distribution qualifies for sale treatment under the partial liquidation rules
D)None of the above answers is correct.

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The Answer of During the year, Hickory Corporation distributed land worth $40,000 (basis $7,000) and equipment worth $10,000 (basis $15,000) to one of its shareholders, R.Due to the distributions, the corporation will report
A)Net income of $28,000 if the distributions are treated as a dividend out of Maple's E&P
B)Net income of $33,000 if the distributions qualify for sale treatment under the basic redemption rules of 302
C)No gain or loss if the distribution qualifies for sale treatment under the partial liquidation rules
D)None of the above answers is correct.

During the Year, Hickory Corporation Distributed Land Worth $40,000 (Basis