Mitchell has been the sole (one hundred percent (100%) shareholder of Brown Corporation, a calendar year 5
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Question:
Mitchell has been the sole (one hundred percent (100%) shareholder of Brown Corporation, a calendar year 5 Corporation, since 1981 , At the end of 2023 , Mitchell's basis in her stock is
- $15,500 and she receives a distribution of $18,000 from Brown Corporation, Corporate levet accounts of Erown Corporation are as follow: Accumulated Adfustments Account (AAA) - $6,000;
- Previously Taxed Income (PTI) - $9,000; Accumulated Earnings,
- And Profits (AEP) - $600, How is Mitchell taxed on the distribution?
- A $1,600 Taxable Dividend: A $600 Taxable Dividend and a $1,500 Long-Term Capital Gain.
- A $600 Taxable Dividend and a $1,000 Long-Term Capital Gain. A $600 Taxable Dividend and a $1,900 Long-Term Capital Gain.
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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