Assume the shareholders have sufficient basis in their stock

Assignment Help Financial Accounting

Reference no: EM131288469

On January 1 of the current year, Rhondell Corporation has accumulated E & P of $116,000. Current E & P for the year is $348,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: A total of $185,600 ($92,800 to Elizabeth and $92,800 to Jonathan) on April 30 and a total of $324,800 ($162,400 to Jonathan and $162,400 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. From Current E & P From Accumulated E & P Treated as Return of Capital April 30 distribution of $185,600 $ $ $ December 31 distribution of $324,800 $ $ $

Reference no: EM131288469

Questions Cloud

Aggregate demand and supply : Image that the mayor has hired you as a consultant to evaluate the increase in aggregate demand in the city where you live. Describe to the mayor one (1) aggregate demand and supply factor that would have the greatest impact on the economy of your..

Discuss trends impacting marketing and the implications : Discuss trends impacting marketing and the implications of these trends on how marketers deliver value to customers.

Create a selection system for the job of barber-hair dresser : create a selection system for the job of barber/hair dresser. At least 1 of the following: biodata, biographical information, or application blank. Provide a justification (reasons) for your choice.

What is jacks adjusted gross income : This year Jack intends to file a married-joint return with two dependents. Jack received $177,800 of salary and paid $6,550 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. What is Jack's adjusted gross income..

Assume the shareholders have sufficient basis in their stock : On January 1 of the current year, Rhondell Corporation has accumulated E & P of $116,000. Current E & P for the year is $348,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to Apri..

Identify national or international political or social issue : Identify a national or international political, social, or economic issue. Discuss the presentation of the issue in current media systems and the issues associated with the message.

Which factors would favour price differentiation : Discuss whether it is possible for Gillette to standardize pricing across borders for its new fiveblade, Fusion. Which factors would favour price standardization and which factors would favour price differentiation?

Evaluate strategies for addressing these challenges : Conduct a 30-minute, semi-structured interview with a manager, Identify common challenges and issues that arise in the workplace,Evaluate strategies for addressing these challenges,Integrate your findings with evidence-based literature from journal a..

What are the major causes of international price escalation : What are the major causes of international price escalation? Suggest possible courses of action to deal with this problem.- Explain how exchange rates and inflation affect the way you price your product.

User Account

All Pages