Distribution is a taxable dividend

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Reference no: EM13805767

Misty owns stock in Violet, Inc., for which her adjusted basis is $75,000. She receives a cash distribution of $52,000 from Violet.

I. What is Misty's adjusted basis for the stock if the distribution is a taxable dividend?

II. What is Misty's adjusted basis for the stock if the distribution is a return of capital?

Reference no: EM13805767

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