Solution-Prepare a memo for your firm file

Prepare a memo for your firm file

Reference no: EM132645941

Problem - Your client, Heron Corporation, has a deficit in accumulated E & P of $300,000. Starting this year, it expects to generate annual E & P of $150,000 for the next four years and would like to distribute this amount to its shareholders. How should Heron Corporation distribute the $600,000 over the four-year period to provide the least amount of dividend income to its shareholders (all individuals)? In a letter to your client, make appropriate suggestions on how this should be done. Also prepare a memo for your firm's file. Heron Corporation's address is 12 Nature Trail Way, Daytona Beach, FL 32114.

Reference no: EM132645941

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Prepare a memo for your firm file

Reference no: EM132645941

Reference no: EM132645941

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