Assume the following facts regarding Granite Corporation and Alex Baldwin, one of its shareholders: $0 Granite Corporation's
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Assume the following facts regarding Granite Corporation and Alex Baldwin, one of its shareholders:
$0 | Granite Corporation's Accumulated E&P |
$2,000,000 | Granite Corporation's Current E&P |
4,000 | Total Granite Corporate Shares Outstanding |
2,000 | Shares owned by Alex Baldwin |
$2,000,000 | FMV of Alex Baldwin's 500 Shares |
$400,000 | Basis of Alex Baldwin's 500 Shares |
800 | Shares Redeemed by Alex Baldwin |
Alex Baldwin redeems 800 of his 2,000 shares and received $800,000 in cash from the corporation.
How much gain (loss) will Granite Corporation recognize from distributing the cash?
What is Granite Corporation's Ending Current E&P amount after the distribution?
How much gain will Alex Baldwin recognize from the distribution?
How much total basis does Alex Baldwin have in his remaining shares of stock?
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