Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. big corp. reports accumulated e\&p of $19,000

Big Corp. reports accumulated E\&P of $19,000 and current E\&P of $28,000. In the current...

80.2K

Verified Solution

Question

Accounting

image
Big Corp. reports accumulated E\&P of $19,000 and current E\&P of $28,000. In the current year, the corporation makes the following distributions to its sole shareholder The sole shareholder's basis in her stock is $11,000. What are the tax consequences of the November 1 distribution? A) $7,000 dividend, $8,000 return of capital B) $2,333 dividend, $2,667 capital gain C) $2,333 dividend, $667 return of capital, $2,000 capital gain D) $5,000 dividend

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students