Question: 3 4 . Prior to 2 0 2 4 , C - Mon Corporation had accumulated earnings and profits of $ 1 4 , 0

34. Prior to 2024, C-Mon Corporation had accumulated earnings and profits of $14,000, and during 2024 its net current earnings amounted to $21,000. Enjoying excellent cash flow at the end of 2024, C-Mon distributed $44,000 cash to its sole stockholder, Placo, who had purchased his stock for $14,000 several years ago. How is this distribution treated for tax purposes by Placo? What is Placos basis in their stock at the end of 2024?

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