How much dividend income do the shareholders report

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Reference no: EM13343155

- Gander, a calendar year corporation, has a deficit in current E & P of $100,000 and a $290,000 positive balance in accumulated E & P. If Gander determines that a $500,000 distribution to its shareholders is appropriate at some point during the year, what is the maximum amount of the distribution that could potentially be treated as a dividend?

a. $0.
b. $190,000.
c. $240,000.
d. $290,000.
e. None of the above.

- Falcon Corporation has $200,000 of current E & P and a deficit in accumulated E & P of $90,000. If Swan pays a $300,000 distribution to its shareholders on July 1, how much dividend income do the shareholders report?

a. $0.
b. $10,000.
c. $110,000.
d. $200,000.
e. None of the above.

 

Reference no: EM13343155

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