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Tour X has distributed to shareholder Julie $10,000 in cash and a new Tour X motocross bike that has a fair market value of $4,500.
Tour X has distributed to shareholder Julie $10,000 in cash and a new Tour X motocross bike that has a fair market value of $4,500. Assume that Tour X has current E&P of $150,000. What amount of dividend income will Julie report this year?
a.$10,000
b.$14,500
c.$150,000
d.$4,500
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