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At the end of 2018, assume United Corporation has Accumulated E&P of $20,000. If Greg, the sole shareholder of United, has an adjusted basis in

At the end of 2018, assume United Corporation has Accumulated E&P of $20,000. If Greg, the sole shareholder of United, has an adjusted basis in his stock of $30,000 and the Current E&P at the end of 2019 is a deficit of ($60,000), what is the proper treatment to Greg of a $40,000 cash distribution he receives on March 31, 2019?

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