Lark Enterprises Inc. is a personal holding company. From the information below, compute its maximum dividends-paid deduction.
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Question:
a. Land with a basis of $10,000 and a value of $50,000 was distributed during the taxable year ending December 31 to its two 50 percent shareholders as equal tenants in common.
b. Two months, later cash of $5,000 was distributed to one shareholder and three months later property worth $5,000 to the other.
c. On February 10 of the following year, $3,000 was distributed to each shareholder and an election was made to treat the dividends as paid the previous year.
d. A timely election was made to treat $5,000 each as consent dividends.
Related Book For
South western Federal Taxation 2018 Corporations Partnerships Estates and Trusts
ISBN: 978-1337385985
41st edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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