Question: Exercise 19-21 ( Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $92,500. The

Exercise 19-21 ( Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $92,500. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $138,750 to its sole shareholder, Abby, whose stock basis is $27,750, How is the distribution treated for tax purposes? If an amount is zero, enter "0", As a result the distribution Abby has the following: . Dividend income: . Return of capital: . Capital gain: $ . Stock basis after the distribution

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