At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P...

 

Transcribed Image Text:

At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $55,700. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $83,550 to its sole shareholder, Abby, whose stock basis is $16,710. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: • Dividend income: • Return of capital: $ • Capital gain: $ • Stock basis after the distribution: At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $55,700. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $83,550 to its sole shareholder, Abby, whose stock basis is $16,710. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: • Dividend income: • Return of capital: $ • Capital gain: $ • Stock basis after the distribution:

Answer rating: 100% (QA)

Dividend Income 55700 the amount to the extent of E P Return of Capital 16710 ... View the full answer