This year, Sooner Company reports a deficit in current E&P of ($424,000). Its accumulated E&P at...
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This year, Sooner Company reports a deficit in current E&P of ($424,000). Its accumulated E&P at the beginning of the year was $354,000. Sooner distributed $708,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock is $122,500. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) a. How much of the $708,000 distribution is treated as a dividend to Boomer? Dividend b. What is Boomer's tax basis in his Sooner stock after the distribution? Tax basis c. What is Sooner's balance in accumulated E&P on the first day of next year? Balance in accumulated E & P at the beginning of next year This year, Sooner Company reports a deficit in current E&P of ($424,000). Its accumulated E&P at the beginning of the year was $354,000. Sooner distributed $708,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock is $122,500. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) a. How much of the $708,000 distribution is treated as a dividend to Boomer? Dividend b. What is Boomer's tax basis in his Sooner stock after the distribution? Tax basis c. What is Sooner's balance in accumulated E&P on the first day of next year? Balance in accumulated E & P at the beginning of next year
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Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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