Werling Corporation has current Earnings & Profits $($EP$)$ of $$25,000$ and accumulated EP of

$$10,000.$ Werling Corporation makes the following distributions to its shareholders during the year:

Shareholder Date Amount of Distribution

Mike Meagher February $16$ $$54,000$

Andrea Beats March $3$ $$34,000$

$($a$)$ Please allocate Werling Corporation$$s current EP between Mike and Andrea. How much

current EP do they each receive?

Mike: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Andrea: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$($b$)$ Please allocate Werling Corporation$$s accumulated EP between Mike and Andrea. How much

accumulated EP do they each receive?

Mike: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Andrea: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$($c$)$ How much of Mike$$s distribution will get dividend treatment?

Answer rating: 100% (QA)

To allocate Werling Corporations current Earnings Profits EP and accumulated EP between Mike and And... View the full answer