Question regarding amount of taxable income


Vista Corporation, which has current earnings and profits (CE&P) of $10,000 and accumulated earnings and profits (AE&P) of $30,000, makes a $43,000 distribution to its sole shareholder, Julie, at the end of the current year. Julie has a basis in her Vista stock of $2,000. What is the amount of taxable income Julie must report from the Vista distribution?

$43,000

$41,000

$40,000

$10,000

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Accounting Basics: Question regarding amount of taxable income
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