Kent Corp. is a calendar-year, accrual-basis C corporation. In 2007, Kent made a nonliquidating distribution of property
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Kent Corp. is a calendar-year, accrual-basis C corporation. In 2007, Kent made a nonliquidating distribution of property with an adjusted basis of $150,000 and a fair market value of $200,000 to Reed, its sole shareholder. The following information pertains to Kent:
Reeds basis in Kent stock at January 1, 2007 | $500,000 |
Accumulated earnings and profits at January 1, 2007 | 125,000 |
Current earnings and profits for 2007 | 60,000 |
What was taxable as dividend income to Reed for 2007?
Related Book For
South Western Federal Taxation 2017 Corporations, Partnerships, Estates And Trusts
ISBN: 9781305874336
40th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
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