Harpero Inc is a calendar year C corp. It makes distributions on the last day of each quarter - 3/31; 6/30; 9/30 and 12/31 - to its sole shareholder - Max Magee. Magee's basis in Harpero stock was $5,000. Each distribution is 10% higher than the prior  so the 3/31 was 10,000 and next was 11,000 and next was 12,100 and final was 13,310! $46,410 in total for the year! Accumulated E&P at beginning of year was 10,000 and Current E&P totaled 20,000?How much of the total distributions  will be capital gains to Magee ?

Answer rating: 100% (QA)

The total distributions of 46410 would be allocated ... View the full answer