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Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $45,350. The corporation
Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $45,350. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $68,025 to its sole shareholder, Abby, whose stock basis is $13,605. How is the distribution treated for tax purposes? If an amount is zero, enter "o". 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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