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The Serenity Corporation Distributes $200,000 in Cash to Its Shareholder

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The Serenity Corporation distributes $200,000 in cash to its shareholder during 2016.Accumulated earnings and profits are $80,000 as of January 1,2016.Current earnings and profits for 2016 are $84,000.Jonas,the sole shareholder of Serenity Corporation,has a basis of $48,000 in his stock.What is the tax effect of the distribution for Jonas?


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