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Business, 21.04.2020 16:56 cheyannehatton

Cavalier Corporation had current and accumulated E&P of $500,000 at December 31 20X3. On December 31, the company made a distribution of land to its sole shareholder, Tom Jefferson. The land's fair market value was $200,000 and its tax and E&P basis to Cavalier was $50,000. The tax consequences of the distribution to Cavalier in 20X3 would be:

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Cavalier Corporation had current and accumulated E&P of $500,000 at December 31 20X3. On Decembe...
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