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Sagot :
Answer:
$2,000
Explanation:
Calculation for the amount of the net capital gain realized by Morse from the cash distribution
First step is to calculate the basis prior to the distribution
Basis prior to the distribution=[$4,000+(50%* $10,000)]
Basis prior to the distribution=$4,000+$5,000
Basis prior to the distribution=$9,000
Now let calculate net capital gain realized by Morse from the cash distribution
Net capital gain realized from cash distribution=($9,000-$11,000)
Net capital gain realized from cash distribution=$2,000
Therefore the amount of the net capital gain realized by Morse from the cash distribution will be $2,000
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