Jude Received a $25,000 Distribution from BC Corporation That the Corporation

question 11

Multiple Choice

Jude received a $25,000 distribution from BC Corporation that the corporation identified as $15,000 dividend and $10,000 return of capital.What effect does this distribution have on Jude's taxable income if his basis in the stock of BC is $8,000?

• A)Increase of $25,000
• B)Increase of $17,000
• C)Increase of $15,000
• D)Increase of $10,000

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