Question: This year, Sooner Company reports a deficit in current E&P of ( $ 4 6 0 , 0 0 0 ) . Its accumulated E&P

This year, Sooner Company reports a deficit in current E&P of ($460,000). Its accumulated E&P at the beginning of the year was $256,000. Sooner distributed $512,000 to its sole shareholder, Boomer, on June 30 of this year. Boomer's tax basis in the Sooner stock before the distribution is $93,500.
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.
Problem 18-38 Part a (Algo)
a. How much of the $512,000 distribution is treated as a dividend to Boomer?

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