Suppose Robinson Corp. reported current E&P of

 

negative $$20,000.$ The balance in accumulated 

 

E&P at the beginning of the year was $$60,000.$

$$ On June $30,$ Robinson Corp. distributed $$48,000$ to

John and $$16,000$ to Jane. John has a tax basis in

his Robinson Corp. stock of $$24,000$ and Jane$$s tax

basis is $$10,000.$

$$ What amount of dividend income do John and Jane

report?

$$ What is AE&P at the beginning of the next year?

Fisher College of Business

Answer rating: 100% (QA)

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