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Company A distributes to its shareholder Bob a property whose fair market value is $100 and basis is $40. Assume that Company A has E&P

Company A distributes to its shareholder Bob a property whose fair market value is $100 and basis is $40. Assume that Company A has E&P of $10 and Bobs basis in Company A is $20 at the time of the distribution. What will be tax consequences to Company A and Bob?

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