Pastel Corporation is a calendar year taxpayer. Adam owns one-third (100 shares) of Pastel stock. His...

Transcribed Image Text:

Pastel Corporation is a calendar year taxpayer. Adam owns one-third (100 shares) of Pastel stock. His basis in the stock is $35,000. Pam owns two-thirds (200 shares) of Pastel stock. Her basis in the stock is $45,000. On June 10 of the current year, Pastel distributes $30,000 to Adam and $50,000 to Pam. Requirement a. Determine the tax consequences of the cash distributions to Adam and Pam if current E&P is $30,000 and accumulated E&P is $210,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the appropriate input field. Use parentheses or a minus sign for losses.) Adam Distribution Dividend income Remaining distribution Return of capital Capital gain (loss) Remaining stock basis ... Pam Distribution Dividend income Remaining distribution Requirement b. Determine the tax consequences of the cash distributions to Adam and Pam if current E&P is $26,000 and accumulated E&P is $15,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the appropriate input field. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Adam Pam Requirements Determine the tax consequences of the cash distributions to Adam and Pam in each of the following independent situations: a. Current E&P of $30,000; accumulated E&P of $210,000. b. Current E&P of $26.000: accumulated E&P of $15.000. Next Requirement b. Determine the tax consequences of the cash distributions to Adam and Pam if current E&P is $26,000 and accumulated E&P is $15,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the appropriate input field. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Adam Pam Distribution Dividend income Remaining distribution Return of capital Capital gain (loss) Remaining stock basis Requirements Determine the tax consequences of the cash distributions to Adam and Pam in each of the following independent situations: a. Current E&P of $30,000; accumulated E&P of $210,000. b. Current E&P of $26.000: accumulated E&P of $15.000. Print Done Pastel Corporation is a calendar year taxpayer. Adam owns one-third (100 shares) of Pastel stock. His basis in the stock is $35,000. Pam owns two-thirds (200 shares) of Pastel stock. Her basis in the stock is $45,000. On June 10 of the current year, Pastel distributes $30,000 to Adam and $50,000 to Pam. Requirement a. Determine the tax consequences of the cash distributions to Adam and Pam if current E&P is $30,000 and accumulated E&P is $210,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the appropriate input field. Use parentheses or a minus sign for losses.) Adam Distribution Dividend income Remaining distribution Return of capital Capital gain (loss) Remaining stock basis ... Pam Distribution Dividend income Remaining distribution Requirement b. Determine the tax consequences of the cash distributions to Adam and Pam if current E&P is $26,000 and accumulated E&P is $15,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the appropriate input field. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Adam Pam Requirements Determine the tax consequences of the cash distributions to Adam and Pam in each of the following independent situations: a. Current E&P of $30,000; accumulated E&P of $210,000. b. Current E&P of $26.000: accumulated E&P of $15.000. Next Requirement b. Determine the tax consequences of the cash distributions to Adam and Pam if current E&P is $26,000 and accumulated E&P is $15,000. (Complete all input fields. For zero amounts, make sure to enter "0" in the appropriate input field. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Adam Pam Distribution Dividend income Remaining distribution Return of capital Capital gain (loss) Remaining stock basis Requirements Determine the tax consequences of the cash distributions to Adam and Pam in each of the following independent situations: a. Current E&P of $30,000; accumulated E&P of $210,000. b. Current E&P of $26.000: accumulated E&P of $15.000. Print Done

Answer rating: 100% (QA)

As per given details please refer below answer When corporations distribut... View the full answer