Seagull Corporation

Seagull Corporation

Seagull Corporation owns three machines that it uses in its business. It no longer needs two of these machines and is considering distributing them to its two shareholders as a property dividend. All three machines have a fair market value of $40,000 each. The basis of each machine is as follows: Machine A, $47,000; Machine B, $40,000; and Machine C, $32,000. The corporation has asked you for advice. What do you recommend

 
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