Question: Harpero Inc is a calendar year C corp. It makes distributions on the last day of each quarter - 3/31; 6/30; 9/30 and 12/31 -

Harpero Inc is a calendar year C corp. It makes distributions on the last day of each quarter - 3/31; 6/30; 9/30 and 12/31 - to its sole shareholder - Max Magee. Magee's basis in Harpero stock was $5,000. Each distribution is 10% higher than the prior so the 3/31 was 10,000 and next was 11,000 and next was 12,100 and final was 13,310! $46,410 in total for the year! Accumulated E&P at beginning of year was 10,000 and Current E&P totaled 20,000?How much of the total distributions will be capital gains to Magee ?

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