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Luxor Corp. had E & P of $ 3 0 , 0 0 0 . They had no additional E & P for the year.

Luxor Corp. had E & P of $30,000. They had no additional E & P for the year. On 7/1/23 the corporation distributes $40,000 to its only shareholder, Maria. Her stock basis was $8,000. Discuss the tax implications to Marie for this dividend distribution.

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