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Lee, Inc., an S corporation, has the following: Accumulated adjustments account 20,000 Previously taxed income Earnings and profits 15,000 $ 30,000 Tom, who owns 100%
Lee, Inc., an S corporation, has the following: Accumulated adjustments account 20,000 Previously taxed income Earnings and profits 15,000 $ 30,000 Tom, who owns 100% of Lee, Inc., has a stock basis of $38,000. Tom receives a distribution of $70,000. what is Tom's stock basis after the distribution? .SO B. $15,000 C. $20,000 D. $38,000
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