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Business, 06.03.2020 18:00 Queen9336

During 2018, Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2015, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E P. Which statement is correct? a. Nutt recognizes a $1,000 long-term-capital gain. b. Nutt’s stock basis will be $2,000. c. Nutt’s ordinary income is $15,000. d. Nutt’s return of capital is $11,000. e. None of the above.

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