For each item, enter the appropriate amounts in the associated cells. If the amount is zero,...

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For each item, enter the appropriate amounts in the associated cells. If the amount is zero, enter a zero (O). Either column could have $0 for an answer. Enter all values as positive numbers. Situation 1. Distribution of $15,000 cash to a shareholder if the accumulated adjustments account balance is $5,000 and the shareholder's basis in his or her stock is $15,000. There are no Subchapter C earnings and profits. 2. Distribution of $15,000 cash to shareholder if the accumulated adjustments account balance is $10,000. The shareholder's basis in his or her stock is $15,000. The Subchapter C earnings and profits balance is $5,000. No election to apply distributions to earnings and profits first has been made. 3. Distribution of a computer to a shareholder when its basis to the S Corporation was $15,000 and its fair market value was $10,000. The accumulated adjustments account balance is $10,000, and the shareholder's basis in his or her stock is $10,000. There are no Subchapter C earnings and profits. 4. Distribution of $15,000 cash to a shareholder when the accumulated adjustment account balance is $5,000 and the shareholder's basis in his or her stock is $5,000. The shareholder has made a bona fide loan (the balance is $5,000) to the corporation. There are no Subchapter C earnings and profits. 5. Distribution of $15,000 cash to a shareholder when the accumulated adjustments account balance is $5,000 and the shareholder's basis in his or her stock is $5,000. There is $5,000 of Subchapter C earnings and profits. No election to apply distributions to earnings and profits first has been made. Capital Taxable gain dividends For each item, enter the appropriate amounts in the associated cells. If the amount is zero, enter a zero (O). Either column could have $0 for an answer. Enter all values as positive numbers. Situation 1. Distribution of $15,000 cash to a shareholder if the accumulated adjustments account balance is $5,000 and the shareholder's basis in his or her stock is $15,000. There are no Subchapter C earnings and profits. 2. Distribution of $15,000 cash to shareholder if the accumulated adjustments account balance is $10,000. The shareholder's basis in his or her stock is $15,000. The Subchapter C earnings and profits balance is $5,000. No election to apply distributions to earnings and profits first has been made. 3. Distribution of a computer to a shareholder when its basis to the S Corporation was $15,000 and its fair market value was $10,000. The accumulated adjustments account balance is $10,000, and the shareholder's basis in his or her stock is $10,000. There are no Subchapter C earnings and profits. 4. Distribution of $15,000 cash to a shareholder when the accumulated adjustment account balance is $5,000 and the shareholder's basis in his or her stock is $5,000. The shareholder has made a bona fide loan (the balance is $5,000) to the corporation. There are no Subchapter C earnings and profits. 5. Distribution of $15,000 cash to a shareholder when the accumulated adjustments account balance is $5,000 and the shareholder's basis in his or her stock is $5,000. There is $5,000 of Subchapter C earnings and profits. No election to apply distributions to earnings and profits first has been made. Capital Taxable gain dividends

Answer rating: 100% (QA)

Situation 1 Capital Gain 15000 Cash distribution Taxable Dividends 0 Accumulated adjustme... View the full answer