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Nancy receives a distribution of $170,000 form ABC corporation, an S corporation, in which she is the sole(100%) shareholder. ABC has an accumulated adjustment account

Nancy receives a distribution of $170,000 form ABC corporation, an S corporation, in which she is the sole(100%) shareholder. ABC has an accumulated adjustment account of $22,500 and accumulated earning and profits of $2500. Nancy basis her stock ABC corp is $30,000. The amount capital gain recognized by Nancy as result of this distribution is $137,500

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