Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below. Maple Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, Brady, who immediately elected S corporation status. On December 31 of the current year, Maple distributed $31,000 cash to Brady What is the amount and character of gain Brady must recognize on the distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) c. At the time of the distribution, Brady's basis in his Maple Corp. stock was $O Amount Character 31,00063 Long-term capital gain Gain

Explanation / Answer

C)Amount of gain =Cash distributed -Basis in stock

              = 31000- 0

             = $ 31000

The nature of gain is long term capital gain as it has been 3years since formation

d)Gain : 31000-8000 = $ 2300

Long term capital gain.

**The answers are perfectly correct..please check it again.

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