Craig received a $25,000 distribution from Yellow Corporation that the corporation identified as $15,000 dividend and $10,000 return of capital. What effect does this distribution have on Craig's taxable income if his basis in the stock of Yellow is $8,000?
a. Increase of $25,000
b. Increase of $17,000
c. Increase of $15,000
d. Increase of $10,000
>b. Increase of $17,000 When Craig is receives $15,000 dividend and $10,000 return of capital, then there is an... View the full answer