The sole shareholder receives a 27000 cash distribution


Question - Delta Corporation, a calendar year s corporation, has accumulated adjustments account of $8,000. It also has accumulated earnings and profits from pre 1983 years of $12,000. The sole shareholder receives a $27,000 cash distribution from the corporation. How will the distribution be treated if the basis in the stock is $12,200?

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Accounting Basics: The sole shareholder receives a 27000 cash distribution
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