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During the year, Mr. T, the sole shareholder, redeemed 20…

During the year, Mr. T...
During the year, Mr. T, the sole shareholder, redeemed 20 shares of the stock of D Corp. for $15,000. The basis of the shares redeemed was $8,000 and D Corp.'s E & P is $10,000. Assuming that the redemption does not qualify for sale treatment, Mr. T will report a dividend of how much?$0
$7,000
$10,000
$15,000
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Answered in 8 minutes by:
3/24/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
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$15,000. The basis in the remaining stock then gets adjusted to compensate for the $8k of basis.
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified
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