Tiger Company, a calendar year corporation, reports a deficit in current E&P of negative ($500,000) this year
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Question:
Tiger Company, a calendar year corporation, reports a deficit in current E&P of negative ($500,000) this year and positive accumulated E&P at the beginning of the year of $300000. Tiger distributed $250000 to its sole shareholder on June 30 of this year. How much of the distribution is treated as a return of capital this year if the shareholder has a $1 million adjusted basis in Tiger stock?
Multiple Choice
$500000
$50000
$200000
$0
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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