The following question was given and my teacher said this is everything we need to know in order to solve after a student asked if there was more information to the problem: Peter is the sole owner of Peter’s Pix, Inc. – a guitar pick corporation. After thirty years in the business (some successful, some not), Peter considers liquidating the business. He decides he is not quite ready but figures it is a good time to take some of the accumulated cash out of the business. His balance sheets reflects that the corporation has accumulated earnings of $13,450.00 and his basis in the stock he holds to be $500.00. He has $60,000 in cash in the company and distributes $39,000.00 to himself. Indicate the tax amounts (if any) for his dividend income from the corporation, his recovery of basis (if any) and gain/loss (if any).

Answer rating: 100% (QA)

Answer D ivid end income 39 000 00 Rec overy of basis 500 00 ... View the full answer