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X Inc. has beginning accumulated E&P of $8,000 and currentE&P for the year of $7,000. The corporation makes a cashdistribution of $20,000 to the sole
X Inc. has beginning accumulated E&P of $8,000 and currentE&P for the year of $7,000. The corporation makes a cashdistribution of $20,000 to the sole shareholder. The shareholdersstock basis before the distribution was $4,000.
find the following:
1. amount of taxable dividend
2. non-taxable return of capital
3. recognized capital gain
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