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On January 1 2019, ABC Corporation (a calendar year taxpayer) has accumulated E & P of $30,000 and generates negative current E & P of
On January 1 2019, ABC Corporation (a calendar year taxpayer) has accumulated E & P of $30,000 and generates negative current E & P of ($8,000) during the year. On March 31, the corporation distributes $40,000 to its sole shareholder, Mandy (basis in stock of $9,000). Determine the effect of the distribution on Mandys taxable income and stock basis.
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