ABC Corporation distributes equipment (market value $10,000, basis $19,000) and inventory (market value $70,000, basis $40,000) to

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ABC Corporation distributes equipment (market value $10,000, basis $19,000) and inventory (market value $70,000, basis $40,000) to its sole shareholder. Prior to the two distributions, ABC has $1 million of E&P. How much net taxable income does ABC recognize as a result of the two distributions? $0 $30,000 None of these choices is correct $21,000 $(9,000)