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The sole stockholder in ABC corporation. ABC corporation has accumulated earnings and profits of $15,000 and current earnings and profits of $8000. My basis for ABC corp's stock was $5000. At the end of the year, ABC distributed $27000 to me and pays me a salary of $120,000. Comparable salaries for my services would be $120,000. How should I treat the dividend and capital gain for tax purposes?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9956595

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