Question: Can anyone give me a correct answer? seems like all the past answer I got were incorrect. Please help. Lone Star Company is a calendar-year

Can anyone give me a correct answer? seems like all the past answer I got were incorrect. Please help.

Lone Star Company is a calendar-year corporation, and this year Lone Star reported $130,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $15,600. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $39,000 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31.

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

b. Suppose that Matt sold half of the shares to Chris on June 1st for $43,000. How much dividend income will Matt recognize this year?

c. If Matt's basis in the Lone Star shares was $7,120 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Crawford Labs has increased its profitability dramatically by using models to allocate its sales force among the company's major drugs. To guide that effort, a nonlinear sales-response curve is...

Can anyone give me a correct answer? seems like all the past answer I got were incorrect. Please help. Lone Star Company is a calendar-year corporation, and this year Lone Star reported $130,000 in...

please answer with detailed explanation for all the parts, previous answer was not seems to be correct, please do not cheat the previous answer Required information (The following information applies...

Whole Organizational Design Intervention - Using Galbraith's STAR model, evaluate what you know about the current situation in this organization. Complete each of the categories in Figure 27.4 at the...

step by step for part B & C please! Required information [The following information applies to the questions displayed below] Lone Star Company is a calendar-year corporation, and this year Lone Star...

Need help with B and C please! Answer is complete but not entirely correct. Required information [The following information applies to the questions displayed below.] Lone Star Company is a...

Lone Star Company is a calendar-year corporation, and this year Lone Star reported $130,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's...

Criteria Exemplary 6 points Accomplishe d 4.8 points Developing 3.6 points Beginning Minimum Below Standards 2.4 points 1.2 points Formulated, wrote, interpreted, argued, and evaluated...

This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee. 1...

What are emergent themes for the below comments. The best part is host did not interrupt him even once. great job. Ok, I've destroyed my phone, what's next? I don't know the interviewer, but he did a...

You are to respond to the following questions based on identified leadership style. You are to support your position by applying relevant theoretical concepts in your response (cite course...

Janet Limited a Canadian private company with a December 31 year end. The transactions which may follow involve Janet Limited's capital dividend account. During 2008, the Company received a capital...

A parent sells $30,000,000 retail value of merchandise to its subsidiary during 2012. The subsidiary's beginning inventory for 2012 contains $1,000,000 in merchandise purchased from the parent,...

In this situation, finding the indefinite integral is most easily achieved using the method of integration by substitution. The first step in this method is to let u - g ( x ) , where g ( x ) is part...

Bovous Stores, Inc., sells several products. Information of average revenue and costs is as follows: Selling price per unit $20.00 Variable costs per unit: Direct material $4.00 Direct manufacturing...

Write answers to each of the five (5) situations described below addressing the required criteria (i.e. 1 & 2) in each independent case. You may use a tabulated format if helpful having Threats,...

Fatima Hassan is responsible for the collection, and auditing services of clients' accounts for the Doha Audit Office. Has been commissioned With a new client, Al Wajba Consulting Services Company,...

Fatima Hassan is responsible for the work of compilation, review, and audit clients for Doha CPA firm. She has been assigned a new client, Al-Wajbah Consultation Services Corporation that recently...

Facebook is best described as an example of O a collaboration tool onlyO a networking tool only a networking and distributive toolO a distribution tool onlya distribution, networking, and...

=+a. Write two different, but related, headlines.

2 Do you think all employees would welcome this degree of autonomy? Autonomous work groups were conceived as an open form of structure that allowed work groups to be self- determining in their...

=+a. Should this be placed in a media-specific vehicle (like Maximmagazine for a male audience)?