Describe the effect of a $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is $25,000 when the corporation has a $100,000 of current E P and $100,000 of accumulated E P b A $50,000 accumulated E P deficit and a $60,000 current E P ...

a The distribution is a 100000 dividend payable out of current EP b First 60000 of the distribution ...

Describe the effect of a $100,000 cash distribution paid on January 1 to the sole shareholder of

Question:

Describe the effect of a $100,000 cash paid on January 1 to the sole shareholder of a calendar year whose stock basis is $25,000 when the has
a. $100,000 of current E&P and $100,000 of accumulated E&P
b. A $50,000 accumulated E&P deficit and a $60,000 current E&P balance
c. A $60,000 accumulated E&P deficit and a $60,000 current E&P deficit
d. An $80,000 current E&P deficit and a $100,000 accumulated E&P balance
Answer Parts a through d again, assuming instead that the makes the on October 1 in a nonleap year. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...