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    Amount of Dividend Income

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    Corp has $(25,000) deficit in accumulated E&P and $5,000 in current E&P.
    The balance in current E&P only reflects the results of operations(i.e., current E&P does not reflect any effect (direct or indirect)of distributions)

    The Corporation made the following distributions:
    * 4/25/x1 $15000 Cash
    * 10/1/x1 Marketable equity securities held for investment (FMV $25,000, basis $10,000)

    Determined the amount of dividend income (if any) resulting from each distribution?

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    Solution Summary

    This solution determines the amount of dividend income resulting from each distribution made by the Corporation.