Question
Thunder, an S corporation, has no earnings and profits (E&P). Thunder distributed $100,000 to Ben, its only shareholder. His adjusted basis in Thunder's stock is
Thunder, an S corporation, has no earnings and profits (E&P). Thunder distributed $100,000 to Ben, its only shareholder. His adjusted basis in Thunder's stock is $40,000. The amount that exceeds his adjusted basis in the stock is treated as
A. A taxable capital gain.
B. Previously taxed income.
C. A taxable dividend.
D. A nontaxable distribution.
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Forensic Accounting And Fraud Examination
Authors: Paul Barnes
1st Edition
1118454138, 978-1118454152
