Syms Company reports current E&P of $300,000 and a deficit in accumulated E&P at the beginning of
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Syms Company reports current E&P of $300,000 and a deficit in accumulated E&P at the beginning of the year of ($200,000). Syms distributed $400,000 to its sole shareholder, Marcie Rock, on the last day of the year. Marcie’s tax basis in her Syms stock before the distribution was $75,000.
How much of the $400,000 distribution is treated as a dividend to Marcie?
What is Marcie’s tax basis in her Syms stock after the distribution?
Does Marcie have any capital gain resulting from the distribution, and if yes, how much?
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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