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Carl, an individual owns 80 of the 100 shares of t corp stock oustanding, while the remaining shares are owned by unrelated parties. carl's basis
Carl, an individual owns 80 of the 100 shares of t corp stock oustanding, while the remaining shares are owned by unrelated parties. carl's basis in the 80 shares is $1,600 or $20 per share. This year, t redeemed 10 shares of carl's stock for $4,000. assuming that the redemption does not qualify for sale treatment and t has substantial E&P, determine carl's dividend income?
a. $1,600
b. $2,000
c. $3,800
d. 4,000
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