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Crystal is the sole shareholder of Gems Inc. Gems has a deficit of $60,000 in accumulated earnings and profits at the beginning of the current

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Crystal is the sole shareholder of Gems Inc. Gems has a deficit of $60,000 in accumulated earnings and profits at the beginning of the current year. Gems' current earnings and profits is $35,000. If Gems pays out a cash distribution to Crystal during the current year of $50,000, how much is a taxable dividend to Crystal? Select one: a. $85,000 b. $35,000 C. $50,000 d. $0

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