$2$

$3$

Question $7(4$ points$)$

$$ Saved

At the beginning of the current year, Doug and Alfred each own $50\%$ of Amaryllis Corporation $($a calendar year taxpayer$).$

In July, Doug sold his stock to Kevin for $$140,000.$ At the beginning of the year, Amaryllis Corporation had accumulated E & P of $$240,000$ and its current E & P is $$260,000($prior to any distributions$).$ Amaryllis distributed $$300,000$ on February $15($ $$150,000$ to Doug and $$150,000$ to Alfred$)$ and distributed another $$300,000$ on November $1($ $$150,000$ to Kevin and $$150,000$ to Alfred$).$ Kevin has dividend income of:

$$150,000.$

$11$

$12$

$$140,000.$

$$110,000.$

$15$ None of the above.