Delta Corporation, a calendar-year S corporation, has an accumulated adjustments account of $8,000. It also has accumulated

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Delta Corporation, a calendar-year S corporation, has an accumulated adjustments account of $8,000. It also has accumulated earnings and profits from pre-1983 years of $12,000. The sole shareholder receives a $27,000 cash distribution from the corporation. How will this distribution be treated if the shareholder's basis in the stock is $12,200?

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CCH Federal Taxation Basic Principles 2020

ISBN: 9780808051787

2020 Edition

Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback

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