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Austin Company reports positive current E&P of $270,000 and negative accumulated E&P of $440,000. Austin distributed $334,000 to its sole shareholder, Betsy Bevo, on December
Austin Company reports positive current E&P of $270,000 and negative accumulated E&P of $440,000. Austin distributed $334,000 to its sole shareholder, Betsy Bevo, on December 31, 20X3. Betsy' tax basis in her stock is $167,000. How much of the $334,000 distribution is treated as a dividend to Betsy and what is her tax basis in Austin stock after the distribution?
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