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Catamount Company had current and accumulated E&P of $585,000 at December 31, 20X3. On December 31, the company made a distribution of land to its sole shareholder, Caroline West. The land's fair market value was $234,000 and its tax and E&P basis to Catamount was $292,500. The tax consequences of the distribution to Catamount in 20X3 would be:
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Catamount Company had current and accumulated E&P of $585,000 at December 31, 20X3. On December...
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