Reference no: EM132460189
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $116,650. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $174,975 to its sole shareholder, Abby, whose stock basis is $34,995.
Question problem : How is the distribution treated for tax purposes?
If an amount is zero, enter "0".
As a result the distribution Abby has the following:
1. Dividend income: $__________
2. Return of capital: $__________
3. Capital gain: $__________
4. Stock basis after the distribution: $_________
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How is the distribution treated for tax purposes
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