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Jackson Corporation has negative 30,000 of accumulated EP and positive 40,000 of current EP. On...

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Accounting

Jackson Corporation has negative 30,000 of accumulated EP and positive 40,000 of current EP. On June 1, Jackson Corporation distributes 40,000 to its shareholder Latoya. On August 1, Jackson Corporation distributes 90,000 to its shareholder Janet.
(a) How much of Janets distribution will receive dividend treatment?
(b) How much of Janets distribution will reduce her basis in her stock?

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