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Exercise 13-1 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) holds E & P of $71,800. The corporation
Exercise 13-1 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) holds E & P of $71,800. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $107,700 to its sole shareholder, Abby, whose stock basis is $21,540. How does the Federal income tax law treat this distribution? If an amount is zero, enter "0". As a result the distribution Abby has the following: Dividend income: $ Return of capital: Capital gain: $ Stock basis after the distribution
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