Poplar Corp. has always been an S corporation shareholder. O…
Poplar Corp. has always been an S corporation shareholder. On December 31, Poplar made a nonliquidating distribution of $10,000 cash to Walter, its sole shareholder. What amount and character of gain or loss must Walter recognize on the distribution if his basis in the Poplar stock is $12,000? How does your answer change if Walter’s basis is instead $6,000?
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