What is Fred's taxable gain when his corporation distributes appreciated property?

When a corporation distributes appreciated property to its shareholders, it typically recognizes a gain equal to the fair market value (FMV) of the property at the time of distribution minus its adjusted basis. In this scenario, if the taxable gain is calculated to be $80,000, it indicates that the fair market value of the property received was significantly higher than the corporation's adjusted basis in the property.

Taxable gain in this context follows the principle that the corporation’s gain on distribution is measured by the difference between what the corporation has in the asset (basis) and what it can realize from it (FMV). This gain is recognized whether or not the property is sold, because the transfer of property itself triggers a taxable event.

The other choices might suggest scenarios such as a zero gain, which would typically occur if the property was distributed at its basis, or gains that do not reflect the correct relationship between the basis and fair market value. The $10,000 and $100,000 figures would suggest miscalculations regarding either the basis or the market value involved in the transaction. Thus, the selection of $80,000 illustrates a correct understanding of how the gain is derived and reported in the context of corporate distributions of appreciated property.