Current Earnings and Profits = 30,000 and accumulated Earnings and Profits = 20,000. Shareholder A owned...
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Current Earnings and Profits = 30,000 and accumulated Earnings and Profits = 20,000. Shareholder A owned all the stock and then sold all of it to B during the year. The corporation makes two distributions of $22,000 with A getting the first and B getting the second distribution. How much dividend does each shareholder have? B. What if the distributions are each $32,000? C. Following up with part B: What are the rest of the tax results to B if B's AB in stock = 4,000? D. Accumulated Earnings and Profits = $20,000. Current Earnings and Profits = $30,000. Distributions: April 10 $20,000, July 15 $24,000, and September 15 $36,000. How much of each distribution would be a dividend? E. Current Earnings and Profits = 30,000 and accumulated Earnings and Profits is a deficit of $20,000. The distributions are the same as part D. F. Accumulated Earnings and Profits = $15,000. Current Earnings and Profits = $(12,000). Current E&P is incurred ratably through the year. Distribution = $10,000 on September 1. G. What if the distribution in part F is $1,000 instead? Current Earnings and Profits = 30,000 and accumulated Earnings and Profits = 20,000. Shareholder A owned all the stock and then sold all of it to B during the year. The corporation makes two distributions of $22,000 with A getting the first and B getting the second distribution. How much dividend does each shareholder have? B. What if the distributions are each $32,000? C. Following up with part B: What are the rest of the tax results to B if B's AB in stock = 4,000? D. Accumulated Earnings and Profits = $20,000. Current Earnings and Profits = $30,000. Distributions: April 10 $20,000, July 15 $24,000, and September 15 $36,000. How much of each distribution would be a dividend? E. Current Earnings and Profits = 30,000 and accumulated Earnings and Profits is a deficit of $20,000. The distributions are the same as part D. F. Accumulated Earnings and Profits = $15,000. Current Earnings and Profits = $(12,000). Current E&P is incurred ratably through the year. Distribution = $10,000 on September 1. G. What if the distribution in part F is $1,000 instead?
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A Shareholder A received the first distribution of 22000 which is less than or equal to the total accumulated earnings and profits of 20000 Therefore this distribution is considered a dividend to A Sh... View the full answer
Related Book For
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
Posted Date:
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