Elijah Owns 20% of Park Corporation's Single Class of Stock

question 66

Multiple Choice

Elijah owns 20% of Park Corporation's single class of stock. Elijah's basis in the stock is $8,000. Park's E&P is $28,000. If Park redeems all of Elijah's stock for $48,000, Elijah must report dividend income of

• A)$0.
• B)$28,000.
• C)$40,000.
• D)$48,000.

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