Cactus Corporation, an S Corporation, had accumulated earnings and profits of $200,000 at the beginning...
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Cactus Corporation, an S Corporation, had accumulated earnings and profits of $200,000 at the beginning of the tax year. Tex and Shirley each own 50% of the stock. During the current year Cactus had $100,000 of ordinary income and distributed $10,000 to Tex and $10,000 to Shirley. What is Tex's taxable income for the current year?
a. $100,000
b. $0
c. $50,000
d. $10,000
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