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Zebra, a C Corporation, distributes $40,000 to its sole shareholder, Alicia. At the time of the distribution, Zebra's total E&P is $28,000 and Alicia's gain
Zebra, a C Corporation, distributes $40,000 to its sole shareholder, Alicia. At the time of the distribution, Zebra's total E&P is $28,000 and Alicia's gain from this transaction is a
$12,000 capital gain.
$2,000 capital gain.
$40,000 capital gain.
$30,000 capital gain.
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