Describe the effect of a $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is $25,000 when the corporation has | eBooks | Education

Describe the effect of a $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is $25,000 when the corporation has

Describe the effect of a $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is $25,000 when the corporation has PLDZ-4319 Free
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Describe the effect of a? $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is? $25,000 when the corporation has

https://uopcourses.com/category/acc-455/

 

Describe the effect of a? $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is? $25,000 when the corporation has

 

?$100,000 of current? E&P and? $100,000 of accumulated? E&P

 

A? $50,000 accumulated? E&P deficit and a? $60,000 current? E&P balance

 

A? $60,000 accumulated? E&P deficit and a? $60,000 current? E&P deficit

 

An? $80,000 current? E&P deficit and a? $100,000 accumulated? E&P balance

Answer Parts a through d? again, assuming instead that the corporation makes the distribution on October 1 in a nonleap year.

  1. Describe the effect of a? $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is? $25,000 when the corporation has? $100,000 of current? E&P and? $100,000 of accumulated? E&P.

The distribution is a? $100,000 dividend payable out of current? E&P.

 

?First, $25,000 is a return of capital that reduces the? shareholder's stock basis to zero. The remaining? $75,000 is a capital gain.

The dividend is a? $100,000 dividend payable out of accumulated? E&P.

?First, $25,000 is a return of capital that reduces the? shareholder's stock basis to zero. The remaining? $75,000 is ordinary income.

  1. Describe the effect of a? $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is? $25,000 when the corporation has a? $50,000 accumulated? E&P deficit and a? $60,000 current? E&P balance.

?First, $15,000 is a return of capital that reduces the? shareholder's stock basis to zero.? Second, $60,000 of the distribution is ordinary income from current? E&P. Third, the remaining? $25,000 is a capital gain. The? $50,000 accumulated? E&P deficit remains.

?First, $25,000 is a return of capital that reduces the? shareholder's stock basis to zero.? Second, $85,000 of the distribution is ordinary income from current? E&P. The? $50,000 accumulated? E&P deficit remains.

?First, $25,000 is a return of capital that reduces the? shareholder's stock basis to zero.? Second, $60,000 of the distribution is ordinary income from current? E&P. Third, the remaining? $15,000 is a capital gain. The? $50,000 accumulated? E&P deficit remains.

?First, $60,000 of the distribution is a dividend from current? E&P. Second,? $25,000 is a return of capital that reduces the? shareholder's stock basis to zero.? Third, the remaining? $15,000 is a capital gain. The? $50,000 accumulated? E&P deficit remains.

 

 

 

 

  1. Describe the effect of a? $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is? $25,000 when the corporation has a? $60,000 accumulated? E&P deficit and a? $60,000 current? E&P deficit.
Describe the effect of a? $100,000 cash distribution paid on January 1 to the sole shareholder of a calendar year corporation whose stock basis is? $25,000 when the corporation has https://uopcourses.com/category/acc-455/ Describe the effect of
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