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At the beginning of the year, Myma Corporation (a calendar year taxpayer) has E & P of $130,450. The corporation generates no additional E&P during

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At the beginning of the year, Myma Corporation (a calendar year taxpayer) has E & P of $130,450. The corporation generates no additional E&P during the year. On December 31, the corporation distributes $195,675 to its sole shareholder, Abby, whose stock basis is $39,135. How is the distribution treated for tax purposes? If an amount is zero, enter "O". As a result the distribution Abby has the following: .Dividend income: Return of capital . Capital Capital gain: Stock basis after the distribution

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