Answer:
Check the following explanation.
Explanation:
Corporation has no accumulated E & P at the time of the distribution. The shareholder has a taxable dividend equal to the current E & P determined at year-end, which was $40,000. The balance of the distribution,$20,000, reduces the shareholder’s basis in the stock, and any excess over basis results in capital gain.
<span>When asked which of two countries has a larger population, participants are likely to judge the country that is more familiar to them as being more populous, thus this best explains that this finding is the availability of the heuristic.</span>
