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Maria and Christopher own Charger Corporation, a calendar year taxpayer. Distributions from Charger are $750,000 to Maria (stock basis $250,000) on April 1 and $250,000

Maria and Christopher own Charger Corporation, a calendar year taxpayer. Distributions from Charger are $750,000 to Maria (stock basis $250,000) on April 1 and $250,000 to Christopher (stock basis $55,000) on May 1. Charger's current E&P is $300,000 and its accumulated E&P is $600,000.

Required:

a)What is the amount and character of Christopher's income?

b)What is Christopher's ending stock basis?

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