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Quincy transfers $ 825,000 in cash to newly formed Russell Corporation for 100% of Russell...

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Accounting

Quincy transfers $ 825,000 in cash to newly formed Russell Corporation for 100% of Russell 's stock. In the first year of operations, Russell 's taxable income before any payments to Quincy is $ 215,000.

What total amount of taxable income must Quincy and Russell each report if Russell pays a $ 70,000 dividend to Quincy?

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