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3. El Centro Corporation distributes $50,000 to its sole shareholder Saba. El Centro has earnings and profits of $35,000 and Saba's basis in her stock

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3. El Centro Corporation distributes $50,000 to its sole shareholder Saba. El Centro has earnings and profits of $35,000 and Saba's basis in her stock is $20,000. After the distribution, Saba's basis is A) $5,000. B) $10,000. C) $15,000. D) $20,000

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