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At the beginning of the year, Lewis, Inc. (an S corporation) had an $8,000 balance in AAA. During the year, Lewis earned business income of
At the beginning of the year, Lewis, Inc. (an S corporation) had an $8,000 balance in AAA. During the year, Lewis earned business income of $15,000 and distributed $30,000 to its sole shareholder (Jerry). Jerry's basis in his stock was $12,000 at the beginning of the year. How much of the this distributions will be treated as a capital gain to Jerry?vv
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