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At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $63,750. The corporation generates no additional E &
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $63,750. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $95,625 to its sole shareholder, Abby, whose stock basis is $19,125. How is the distribution treated for tax purposes?
If an amount is zero, enter "0".
As a result the distribution Abby has the following: Dividend income: $_________ Return of capital: $__________ Capital gain: $___________ Stock basis after the distribution: $___________
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