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Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar...

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Accounting

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Exercise 19-21 (Algorithmic) (LO. 1) At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $155,750. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $233,625 to its sole shareholder, Abby, whose stock basis is $46,725. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: Dividend income: $ Return of capital: Capital gain: Stock basis after the distribution: $

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