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What effect does distribution have on craig taxable income

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Question - Craig received a $25,000 distribution from Yellow Corporation that the corporation identified as $15,000 dividend and $10,000 return of capital. What effect does this distribution have on Craig's taxable income if his basis in the stock of Yellow is $8,000?

a. Increase of $25,000

b. Increase of $17,000

c. Increase of $15,000

d. Increase of $10,000

Reference no: EM131975247

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