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Question - Vaccines corporation sold equipment used in its business to its sole shareholder Clancy Yarrow for $10,000. On the date of the sale, the fair market value of the equipment was $15,000 and Clancy's adjusted basis was $12,000. What amount of the transer is considered to be a dividend to Clancy?
a. $20,000
b. $5,000
c. $2,000
d. $0
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