Zebra Corporation has always been an S corporation and is 100% owned by Paul. Paul has a
Fantastic news! We've Found the answer you've been seeking!
Question:
Zebra Corporation has always been an S corporation and is 100% owned by Paul. Paul has a basis of $40,000 in his Zebra stock at the beginning of the year. During the year, Zebra has an ordinary loss of $20,000 and a long-term capital gain of $10,000. In addition, Zebra Corporation distributed $55,000 in cash to Paul on December 1. Will the distribution cause Paul to recognize a gain? If so, what are its amount and character?
Expert Answer:
Answer rating: 100% (QA)
The answer of the question is 5000 gain recognise by t... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Cash and cash equivalents at the beginning of the year totaled $10,000 The statement of cash flows reported the following net cash provided by operating activity of $5,000, net cash used by investing...
-
A building acquired at the beginning of the year at a cost of $485,000 has an estimated residual value of $75,000 and an estimated useful life of 25 years. Determine (a) The depreciable cost, (b) The...
-
A building acquired at the beginning of the year at a cost of $650,000 has an estimated residual value of $125,000 and an estimated useful life of 40 years. Determine (a) The double-declining-balance...
-
Villaverde Company insures the life of its president for P8,000,000, the corporation being the beneficiary of an ordinary life policy. The premium is P200,000. The policy is dated January 1, 2010....
-
The probability of an operator entering alphanumeric data incorrectly into a field in a database is equally likely. The random variable X is the number of fields on a data entry form with an error....
-
A 100 g steel ball and a 200 g steel ball each hang from 1.0-m-long strings. At rest, the balls hang side by side, barely touching. The 100 g ball is pulled to the left until the angle between its...
-
Compare equipment maintenance strategies in product and process layouts. LO.1
-
Following is a selection of improperly recorded transactions that occurred during 2012 and a description of how each transaction was recorded by a township. Prepare the necessary entries to correct...
-
describe three qualitative factors tin Apple hat would be important for management decision-making. Then, assess each of them in order of importance. Given your assessment, justify a situation where...
-
The frame of the roller has a mass of 5.5 Mg and a center of mass at G. The roller has a mass of 2 Mg and a radius of gyration about its mass center of k A = 0.45 m. If a torque of M = 600 N m is...
-
Which of the following citations references a U.S. federal income tax regulation? A. 212(a)(1) B. 1.212-3 C. 212.11 D. 26 U.S.C. 212
-
From your reading this unit on motivation and change from the TIP series, what is the connection and interplay between these concepts/statements below in your opinion in working with clients facing...
-
Please help with the following The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the...
-
Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,200 cases of Oktoberfest-style beer from a German supplier for 276,000 euros. Relevant U.S. dollar exchange rates for the euro...
-
Define meaning of partnership deed.
-
List down the information contains in the partnership deed.
-
Exercise 2 - 1 1 ( Static ) Varying Plantwide Predetermined Overhead Rates [ LO 2 - 1 , LO 2 - 2 , LO 2 - 3 ] Kingsport Containers Company makes a single product that is subject to wide seasonal...
-
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
-
Describe how software can assist in project risk management? LO.1
-
Provide examples of using different risk response planning strategies to address both negative and positive risks? LO.1
-
_____________ is an uncertainty that can have a negative or positive effect on meeting project objectives. a. Risk utility b. Risk tolerance c. Risk management d. Risk LO.1
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App