On December 1, 2007, Gelt Corporation declared a dividend and distributed to its sole shareholder, as a dividend in kind, a parcel of land that was not an inventory asset. On the date of the distribution, the following data were available:
|
Adjusted basis of land |
$ 6,500 |
|
Fair market value of land |
14,000 |
|
Mortgage on land |
5,000 |