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ulio Inc. is a shareholder of Gray Corporation and is subject to a 21% tax rate. It acquired 2,000 shares of stock in Gray Corporation

ulio Inc. is a shareholder of Gray Corporation and is subject to a 21% tax rate. It acquired 2,000 shares of stock in Gray Corporation seven years ago at a cost of $50 per share. In the current year, Julio, Inc. received a payment of $150,000 from Gray Corporation in exchange for 1,000 of its shares in Gray. Gray has E

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