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Business, 29.03.2021 19:00 cocothunder635

Assume that at the end of 2019, Clampett, Inc. (an S corporation) distributes property (fair market value of $40,000, basis of $5,000) to each of its four equal shareholders (aggregate distribution of $160,000). At the time of the distribution, Clampett, Inc., has no corporate earnings and profits and J. D. has a basis of $50,000 in his Clampett, Inc., stock. How much income does J. D. recognize as a result of the distribution

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Assume that at the end of 2019, Clampett, Inc. (an S corporation) distributes property (fair market...

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