Reference no: EM132673476

Problem - Harold, Marcia, and Richard are equal shareholders in Pelican Corporation, a calendar year C corporation. During the current year, Pelican makes a $150,000 distribution to its three shareholders. Of the $50,000 that each shareholder receives, the tax result is as follows. How can these different results occur?

$10,000 of dividend income to Harold.

$10,000 of dividend income and $20,000 capital gain to Marcia.

$10,000 dividend income and $40,000 capital gain to Richard.