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Green Corporation (a calendar year taxpayer) had a deficit in accumulated E&P of 250000 at the beginning of the current year. Its net profit for

Green Corporation (a calendar year taxpayer) had a deficit in accumulated E&P of 250000 at the beginning of the current year. Its net profit for the period January 1 through July 30 was 300000, but its E&P for the entire taxable year was only 40000. If Green made a distribution of 60000 to its sole shareholder on August 1, how will the shareholder be taxed?

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