a owns all of the stock of x the stocks basis


A owns all of the stock of X.  The stock's basis is $100.  X has a total of current and accumulated earnings and profits of $50.  X distributes $200 cash to A "with respect to his stock" (i.e., as a state law "dividend").  How is the $200 taxed and what is A's stock basis after the distribution?

 

 

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Corporate Finance: a owns all of the stock of x the stocks basis
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