Essay
SaintClair Company reports positive current E&P of $500,000 in 20X3 and positive accumulated E&P at the beginning of the year of $400,000. SaintClair Company distributed $600,000 to its sole shareholder, Danielle Brush, on December 31, 20X3. Danielle's tax basis in her SaintClair stock is $120,000. How much of the $600,000 distribution is treated as a dividend to Danielle, and what is her basis in SaintClair stock after the distribution?
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