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An S corporation distributes a BMW to its 40% shareholder. FMV of the BMW 20,000 BMW Original Cost 35,000 Accum Depreciation 33,000 Adjusted Basis of

An S corporation distributes a BMW to its 40% shareholder. FMV of the BMW 20,000 BMW Original Cost 35,000 Accum Depreciation 33,000 Adjusted Basis of the BMW 2,000.

What is the shareholder's adjusted basis in the BMW after the distribution?

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