General inertia corporation made a pro rata distribution of $50,000 to tiara, inc. in partial liquidation of the company on december 31, 20x3. tiara, inc. owns 500 shares (50%) of general inertia. the distribution was in exchange for 250 shares of tiara's stock in the company. after the partial liquidation, tiara continued to own 50% of the remaining stock in general inertia. at the time of the distribution, the shares had a fair market value of $200 per share. tiara's income tax basis in the shares was $100 per share. general inertia had total e& p of $800,000 at the time of the distribution. what amount of dividend or capital gain does tiara recognize because of the transaction?

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business. identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats. implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the