How much dividend income must susie recognize

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Question - XYZ Company distributed a filing cabinet to Susie Shareholder at a time when it had $50 of E&P. The filing cabinet was worth $5, had a cost to XYZ of $10, and XYZ claimed $3 of depreciation expense on the filing cabinet. The filing cabinet was encumbered by a $2 mortgage, which Susie assumed. How much dividend income must Susie recognize?

Reference no: EM133145970

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