Sole shareholder of a calendar

Assignment Help Accounting Basics
Reference no: EM13120825

During 2010, Shirley Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2009, her stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?

a. Nutt recognizes a $1,000 LTCG.

b. Nutt's stock basis will be $2,000.

c. Nutt's ordinary income is $15,000.

d. Nutt's return of capital is $11,000.

e. None of the above.

Reference no: EM13120825

Questions Cloud

Abstract algebra-equivalence relations : A relation R is defined on the set Z of all integers. In each case, prove that R is an equivalence relation. Find the distinct equivalence classes of R and list at least four members of each.
Find standard error for the sample mean salary : Standard deviation of $1.2 million in 2009. Suppose a sample of 100 major league players was taken. What was the standard error for the sample mean salary?
Determine the predetermined overhead rate for june : The manufacturing overhead budget of Lewison Corporation is based on budgeted direct labor-hours. The June direct labor budget indicates that 5,800 direct labor-hours will be required in that month.
How large sample is necessary if standard deviation is known : Community college spends each year. If she wishes to be 90% confident, how large a sample is necessary if the standard deviation is known to be $80?
Sole shareholder of a calendar : During 2010, Shirley Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. On December 31, 2009, her stock basis was $4,000.
Logarithms and simultaneous equations : Given that x and y are both positive, solve the simultaneous equations.
Determine probability that selected smoker has lung disease : Of those not having lung disease, 25.3% are smokers. Determine the probability that a randomly selected smoker has lung disease.
What is the total amount of taxes withheld : Phil Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate for social security is 6.2% and the FICA tax rate for Medicare is 1.45%.
Create an analogy or metaphor : Determine which step in estimating a cost function using quality analysis is the most likely to present the greatest challenge and how you would address that challenge.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Translation-transaction and economic exposure

What are the different issues involved with translation exposure, transaction exposure and economic exposure? How can companies plan to mitigate the risk of each? What are the opportunity costs associated with measures to mitigate this risk?

  Capitalized lease liability

The rounded present value of an ordinary annuity for nine years at 9% is 6.0. What amount should N report as capitalized lease liability at December 31, 2009?

  Determining optimal price and output

Suppose the two firms act as perfect competitors and try to out compete each other and do not collude, what would be the optimal industry price and output?

  Capital investment analysis

Parsing Electronics is interested in expanding its operations with a new manufacturing facility in Slovakia. The company prepares a capital investment analysis on the validity of the project and finds that the project is viable. The company expect..

  Academic approach to stock price

The stock has a beta equal to 0.75. The risk-free rate is 5.0%, and the market risk premium is 5.5%. The stock's dividend is expected to grow at some constant rate g. The stock currently sells for $50 a share. Assume that the market is in equilibr..

  What is the cost of the second passenger

if you are driving in your own car to another city, how much will it really cost you to make that drive? Should you include the cost of the car, part of the cost of the car, none of it? What if a friend asked if he could ride with you? What is the..

  Identify the activities and drivers-measurable

Identify drivers of those activities, bearing in mind that it must be easy to measure and record the values of the drivers. Do you see any potential benefit in implementing ABC for Netflix?

  Accounts receivable-bad debt journal entries

Prepare example journal entries to account for transactions related to accounts receivable and bad debt using both percentage of sales and the percentage of receivables methods.

  What entry is required in the depositors accounts

A check drawn by a depositor in payment of a voucher for $925 was recorded in the journal as $295. What entry is required in the depositor's accounts?

  Correcting entries and retained earnings

Make the appropriate entry to correct the error. Prepare a statement of retained earnings for Tall Industries for the year ended December 31, 2006.

  Discretionary and nondiscretionary fiscal policy

Analyze the difference between discretionary and nondiscretionary fiscal policy. Explain the effects of discretionary and nondiscretionary fiscal policy on governmental revenue and expenditures.

  Why did the ethical dilemma arise

What will be the implications of the decision of the manager to lay off the 3 experienced sales executives?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd