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At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $166,100. The corporation generates no additional E &

At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $166,100. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $249,150 to its sole shareholder, Abby, whose stock basis is $49,830. How is the distribution treated for tax purposes?

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