Craig received a $25,000 distribution from Yellow Corporation that the corporation identified as $15,000 dividend and $10,000 return of capital.
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
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