Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dried fruit corp. has had a valid s corp election

Dried Fruit Corp. has had a valid S Corp election in effect at all times...

70.2K

Verified Solution

Question

Accounting

image

Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one-third by Raisin and two-thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $108,000 and Prune's basis in her shares was $36,000. During the current year, Dried Fruit Corp. earned $648,000 of net income from operations. Raisin's share was $216,000; Prune's share was $432,000. On July 1st, Dried Fruit Corp. distributed $288,000 to Raisin and $576,000 to Prune. How much gain does Prune recognize as a result of this transaction? $0 O $72,000 $108,000 O $36,000

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You wish to create a cylindrical can that can hold a volume of 475 mL. The...

Basic Math
Q

hemistry 1215, Experiment #12; Determination of the Atomic Weight of an Unknown Metal, Post-lab Name ____________________________________ 1....

Chemistry
Q

4.) You are managing a task on the critical path which has a BAC of $500,000....

Operations Management
Q

Steve is the director of operations for a diamond company. The company is considering whether to...

Basic Math
Q

Fairness of the Federal Estate Tax" Based on the information contained in the textbook, several arguments exist...

Accounting
Q

single 6 sided die is rolled twice The set of 36 equally likely outcomes is...

Statistics
Q

The graph represents a relation where x represents the independent variable and y 5 4...

Algebra
Q

(Learning Objective 2: Apply the revenue and expense recognition principles) A large auto manufacturer sells...

Accounting
Q

The ThirstBuster Company is famous for their pop drinks. The company expects to produce 2,167,000...

Accounting
Q

it is not... Alternatives to his shoes online.

Accounting
Q

The cost of the investment is $25563.00 so how long will it take to pay...

Finance
Q

Carnes Cosmetics Co.'s stock price is $36, and it recently paid a $2.50 dividend. This...

Finance