Dixie Corporation distributes $31,000 to its sole shareholder, Sally. At the time of the distribution, Dixie's Earnings
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Dixie Corporation distributes $31,000 to its sole shareholder, Sally. At the time of the distribution, Dixie's Earnings and Profits (E&P) is $25,000 and Sally's basis in her Dixie stock is $10,000. Sally's basis in her Dixie stock after the distribution is ?
(A). $31,000
(B). $25,000
(C). $10,000
(D). $4,000
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