Joshua Owns 100% of Steeler Corporation's Stock

question 22

Multiple Choice

Joshua owns 100% of Steeler Corporation's stock. Joshua's basis in the stock is $8,000. Steeler Corporation has E&P of $40,000. If Steeler Corporation redeems 60% of Joshua's stock for $50,000, Joshua must report dividend income of

• A)$0.
• B)$8,000.
• C)$40,000.
• D)$50,000.

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