Acme, a C corporation, has $45,000 in E&P. It makes a cash distribution to its only shareholder

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Acme, a C corporation, has $45,000 in E&P. It makes a cash distribution to its only shareholder of $75,000. The shareholder’s basis in the stock before the distribution is $12,000. How much income, and what character, does the shareholder have?

Related Book For answer-question

South Western Federal Taxation 2015

ISBN: 9781305310810

38th edition

Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young

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Posted Date: Jan 18, 2021 11:13 AM

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Acme, a C corporation, has $45,000 in E&P. It makes a cash distribution to its only shareholder

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Ordinary income dividend 45000 Return of capital 12000 Ca... View the full answer

South Western Federal Taxation 2015

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