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Business, 07.05.2020 14:57 shakebays

Longhorn Company reports current E&P of $100,000 in 20X3 and a deficit of ($200,000) in accumulated E&P at the beginning of the year. Longhorn distributed $300,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in Longhorn is $100,000. How is the distribution treated by the shareholder in 20X3?

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Longhorn Company reports current E&P of $100,000 in 20X3 and a deficit of ($200,000) in accumula...

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