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On January 1, Trumpeter, Inc. has accumulated E & P of $300,000. (Trumpeter reports on a calendar year). For the year, it has a net operating loss of $300,000. On June 30, Trumpeter distributes $160,000 to Don, its sole shareholder, who has a stock basis of $112,500. What is Don's stock basis after the distribution?
a. $0b. $102,500c. $112,500d. $150,000 e. None of the above
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