Question: At the beginning of the year Penguin Corporation a calendar
At the beginning of the year, Penguin Corporation (a calendar year tax payer) has accumulated E & P of $55,000. During the year, Penguin incurs a $36,000 loss from operations that accrues ratably. On October 1, Penguin distributes $40,000 in cash to Holly, its sole shareholder. How is Holly taxed on the distribution?
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