Kent Corp. is a calendar-year, accrual-basis C corporation. In 2007, Kent made a nonliquidating distribution of property with an adjusted basis of $150,000 and a fair market value of $200,000 to Reed, its sole shareholder. The following information pertains to Kent:

Reeds basis in Kent stock at January 1, 2007	$500,000
Accumulated earnings and profits at January 1, 2007	125,000
Current earnings and profits for 2007	60,000

What was taxable as dividend income to Reed for 2007?

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Answer rating: 100% (QA)

To determine the taxable dividend income to Reed for 2007 we need to calculate the amount of the dis... View the full answer