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Assume a corporation winds up its operations and is left with cash on hand of $1,600,000 to distribute to shareholders. The corporation has a capital

Assume a corporation winds up its operations and is left with cash on hand of $1,600,000 to distribute to shareholders. The corporation has a capital dividend account of $300,000 and PUC of $275,000. The corporation has one shareholder, who holds 28,000 shares with an adjusted cost base of $235,000. How will the proceeds be taxed to the shareholder? Choose the correct answer. OA. Taxable dividend of $1,325,000 & capital gain of $40,000 OB. Taxable capital gain of $790,000 OC. Taxable dividend of $1,025,000 & taxable capital gain of $20,000 OD. Taxable capital gain of $235,000

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