AndyCo acquires DrewCo in a merger, becoming AndrewCo. AndyCo has $1,000,000 in positive accumulated E & P
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AndyCo acquires DrewCo in a merger, becoming AndrewCo. AndyCo has $1,000,000 in positive accumulated E & P before the merger, and DrewCo has negative accumulated E & P of $400,000 before the merger. AndrewCo wants to make a distribution to its shareholders after the end of its first year. How much of the distribution is treated as a dividend if AndrewCo expects to have minimal negative current E & P at the end of its first year?
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
South Western Federal Taxation 2020 Corporations, Partnerships, Estates And Trusts
ISBN: 9780357109168
43rd Edition
Authors: William A. Raabe, James C. Young, William H. Hoffman, Annette Nellen, David M. Maloney
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