95.Award:1.00 pointElk Company reports negative current E&P of $200,000 and positive accumulated E&P of $300,000. Elk distributed $200,000 to its sole shareholder, Barney Rubble, on December 31, 20X3. Barneys tax basis in his Elk stock is $75,000. What is the tax treatment of the distribution to Barney and what is his tax basis in Elk stock after the distribution?

Answer rating: 100% (QA)

100000 dividend income 75000 taxfree return of capital 25000 capital ... View the full answer