In each of the independent cases below, indicate the taxable portion and return of capital, assume sufficient
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In each of the independent cases below, indicate the taxable portion and return of capital, assume sufficient basis for each distribution.
| accumulated E&P Beginning of year | current E&P | Year end cash distribution | taxable amount | return of capital |
| a. $40,000 | $20,000 | $60,000 | ? | ? |
| b. 40,000 | 20,000 | 70,000 | ? | ? |
| c. (40,000) | 40,000 | 30,000 | ? | ? |
| d. (10,000) | (20,000) | 15,000 | ? | ? |
| e. 40,000 | (15,000) | 35,000 | ? | ? |
Expert Answer:
Lets analyze each case a Total distribution 60000 20000 cash distribution Taxable amoun... View the full answer
Related Book For 
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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