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Assume that on the finish of 2018, Clampett, Inc. (an S company) distributes long-term capital acquire property

(truthful market worth of $40,000, foundation of $25,000) to every of its 4 equal shareholders (mixture distribution of $160,000). On the time of the distribution, Clampett, Inc. has no company E&P and J. D. has a foundation of $15,000 in his Clampett, Inc. inventory. How a lot earnings does J. D. acknowledge because of the distribution?

A number of Alternative