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Nirvana Corporation has accumulated E&P of $5,000, but a current deficit of $2,000.

This question was answered on May 07, 2010. View the Answer
Nirvana Corporation has accumulated E&P of $5,000, but a current deficit of $2,000. If Nick Normans, the sole shareholder, has a basis of $7,000 in his stock and receives a distribution of $13,000 in the beginning of the year, his gross income equals:

a. $0
b. $13,000
c. $6,000
d. $7,000
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This question was asked on May 04, 2010 and answered on May 07, 2010.

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