Joanne owns 100% stock of the hockey shop. Her basis in the stock is $24,000. in its first year of existence the hockey shop earned $30,000 of E&P. One half of this sum was earned form January through June, the other half from July through December. On July 1 hockey shop distributed $40,000 in cash to Joanne. 

How will Joanne treat distribution for tax purposes?

Answer rating: 100% (QA)

To determine how Joanne will treat the distribution from the hockey shop for tax purposes we need to ... View the full answer