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    S Corporations: Delta Corporation (Handling Cash Distributions)

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    Delta Corporation, a calender-year S corporation, has an accumulated adjustments account of $8,000. It also has accumulated earnings and profits from pre-1983 years of $12,000. The sole shareholder receives a $27,000 cash distribution from the corporation. How will this distribution be treated if the shareholder's basis in the stock is $12,200?

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    Given that Delta Corporation elected to take distributions first from ...

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    This solution provides answers for cash distributions.