St.Clair Corporation reports positive current E&P of $500,000 in year 1 and positive accumulated E&P at the beginning of the year of $400,000.St.Clair Company distributed $600,000 to its sole shareholder, Danielle Brush, on December 31, year 1.Danielle's tax basis in her St.Clair stock is $120,000.How much of the $600,000 distribution is treated as a dividend to Danielle and what is her basis in St.Clair stock after the distribution?

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The Answer of St.Clair Corporation reports positive current E&P of $500,000 in year 1 and positive accumulated E&P at the beginning of the year of $400,000.St.Clair Company distributed $600,000 to its sole shareholder, Danielle Brush, on December 31, year 1.Danielle's tax basis in her St.Clair stock is $120,000.How much of the $600,000 distribution is treated as a dividend to Danielle and what is her basis in St.Clair stock after the distribution?

StClair Corporation Reports Positive Current E&P of $500,000 in Year