How much is a taxable dividend to jane

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Problem - Jane is the sole shareholder of Buttons, Inc. Buttons has a deficit of $60,000 in accumulated earnings and profits (E & P) at the beginning of the current year. Current E & P is $35,000. If Buttons pays out a cash distribution to Jane during the current year of $50,000, how much is a taxable dividend to Jane?

a. $0

b. $35,000

c. $50,000

d. $85,000

Reference no: EM132645953

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