![Business](/tpl/images/cats/ekonomika.png)
Grape Corporation makes a nonliquidating distribution of appreciated property to its shareholders.
a. The shareholders will report dividend income equal to the basis of the property distributed.
b. The corporation will report a gain.
c. The corporation will report dividend expense equal to the fair value of the property distributed.
d. The shareholders will report a gain.
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Answers: 3
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Grape Corporation makes a nonliquidating distribution of appreciated property to its shareholders....
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