Reference no: EM13746933
Ash Distributions; Determination of Taxable Amount (LO. 1, 3)
Larry, the sole shareholder of Brown Corporation, sold his Brown stock to Ed on July 30 for $270,000. Larry’s basis in the stock was $200,000 at the beginning of the year. Brown had accumulated E & P of $120,000 on January 1 and has current E & P of $240,000. During the year, Brown made the following distributions: $450,000 of cash to Larry on July 1 and $150,000 of cash to Ed on December 30.
Complete each lettered statement below by entering in the value.
a. How much of the current E & P is allocated to Larry’s distribution?
$
b. How much of the current E & P is allocated to Ed’s distribution?
$
c. How much of the $450,000 distribution is taxed as dividend income to Larry?
$
d. How much of the $150,000 distribution is taxed as dividend income to Ed?
$
e. Larry recognizes a capital gain of $ on the sale of the stock.
|
Write a paper on the civil rights efforts of john f kennedy
: Write a short paper on The Civil Rights Efforts of John F. Kennedy.
|
|
Bond interest expense is recorded on the next interest date
: Detail, please. Wendy Company issued $600,000 of 8%, 5-year bonds at 105. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date?
|
|
Is the price elasticity of gasoline more elastic
: Explain the relationship between the price elasticity of demand and total revenue. Is the price elasticity of gasoline more elastic over a shorter or a longer period of time? Explain
|
|
Total monthly cost of the sales representatives salary
: Omar Corporation paid one of its sales representatives $4,300 during the month of March. The rep is paid a base salary plus $15 per unit of product sold. During March, the rep sold 200 units. Calculate the total monthly cost of the sales representati..
|
|
Determination of taxable amount
: How much of the current E & P is allocated to Larry’s distribution? How much of the current E & P is allocated to Ed’s distribution? How much of the $450,000 distribution is taxed as dividend income to Larry? How much of the $150,000 distribution is ..
|
|
Listening posts
: Identify what you believe are the company's "listening posts" (key opportunities) for getting feedback from the external environment
|
|
Define and sequence the key project activities
: This part of the project requires you to apply your skills and knowledge to manage a project from the beginning stages of the project scope through to implementation and review of project outcomes. You are required to read the case study given in t..
|
|
Cost of individual assets in a lump-sum purchase of assets
: (Learning Objective 1: Measure and record the cost of individual assets in a lump-sum purchase of assets) Advanced Automotive pays $210,000 for a group purchase of land, building, and equipment. At the time of acquisition, the land has a current mark..
|
|
Strategic advantage in the marketplace
: In planning, one component to explore is how an entrepreneurial organization's internal competencies help to achieve a strategic advantage in the marketplace
|