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Question - Ron Miller is the sole shareholder of an S corporation. During 2018, Ron received a distribution of $20,000. His basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of capital gain for Ron?
a. $1,000
b. $8,000
c. $19,000
d. $27,000
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