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Davis Corporation has a deficit in accumulated E & P of $380,000 and has current E & P of $246,000. On July 1, Davis distributes
Davis Corporation has a deficit in accumulated E & P of $380,000 and has current E & P of $246,000. On July 1, Davis distributes $265,000 to its sole shareholder, Justin Timberlake, who has a basis in his stock of $65,200. Find Justin Timberlake's new stock basis as well as the amount of dividend he received. Show all work
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