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At the beginning of the year, Miley Corporation, a calendar year taxpayer, has E & P of $40,000. The corporation generated no additional E &
At the beginning of the year, Miley Corporation, a calendar year taxpayer, has E & P of $40,000. The corporation generated no additional E & P during the year. On December 31st, the corporation distributes $72,000 to its sole shareholder, Ellen, who has a stock basis of $14,700. How much of the distribution should be treated as a taxable capital gain?
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