Exercise $19-22($Algorithmic$)($LO$.3)$ Exercise $19-22($Algorithmic$)($LO$.3)$

On January $1$ of the current year, Rhondell Corporation has accumulated E & P of $$166,000.$ Current E & P for the year is $$498,000,$ earned

evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January $1$ to April $30.$ On May $1,$ Elizabeth

sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $$265,600($ $$132,800$ to

Elizabeth and $$132,800$ to Jonathan$)$ on April $30$ and a total of $$464,800($ $$232,400$ to Jonathan and $$232,400$ Marshall$)$ on December $31.$

Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their

stock for any amount that is treated as return of capital.

If an amount is zero, enter $"0".$ If required, round any division to two decimal places and use in subsequent computations.

Round final answers to the nearest dollar.

Foodaack

Chock My Wark

Accumulated $E$ & $P$ is the total of all previous years' current $E$ & $P($since February $28,1913)$ reduced by distributions made from $E$ & $P$ in previous

years. It is important to distinguish between current E & P and accumulated E & P because the taxability of corporate distributions depends on

how these two accounts are allocated to each distribution made during the year.

On January $1$ of the current year, Rhondell Corporation has accumulated E & P of $$166,000.$ Current E & P for the year is $$498,000,$ earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January $1$ to April $30.$ On May $1,$ Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $$265,600($$$132,800$ to Elizabeth and $$132,800$ to Jonathan$)$ on April $30$ and a total of $$464,800($$$232,400$ to Jonathan and $$232,400$ Marshall$)$ on December $31.$

Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital.

If an amount is zero, enter $"0".$ If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar.

From Current

E & P From Accumulated

E & P Treated as

Return of Capital

April $30$ distribution of $$265,600$ $fill in the blank $1$

$fill in the blank $2$

$fill in the blank $3$

December $31$ distribution of $$464,800$ $fill in the blank $4$

$fill in the blank $5$

$fill in the blank $6$