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At the beginning of the year, Veal Corporation had accumulated E & P of $210,000. On March 30, Veal sold an asset at a loss
At the beginning of the year, Veal Corporation had accumulated E & P of $210,000. On March 30, Veal sold an asset at a loss of $200,000. For the calendar year, Veal incurred a deficit in current E & P of $255,000, which includes the $200,000 loss on the sale of the asset. If Veal made a distribution of $20,000 to its sole shareholder on April 1 and the shareholder had a basis in her stock of $52,000, how will the shareholder be taxed?
Group of answer choices
$52,000 Dividend
$20,000 Capital Gain
$20,000 Return of capital
$20,000 Dividend
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