Jayhawk Company reports current E&P of $365,000 and accumulated E&P of negative $330,000. Jayhawk distributed...
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Jayhawk Company reports current E&P of $365,000 and accumulated E&P of negative $330,000. Jayhawk distributed $435,000 to its sole shareholder, Christine Rock, on the last day of the year. Christines tax basis in her Jayhawk stock is $59,750.
a. How much of the $435,000 distribution is treated as a dividend to Christine?
Dividend $ 365,000
b. What is Christines tax basis in her Jayhawk stock after the distribution?
Tax Basis $
c. What is Jayhawks balance in accumulated E&P on the first day of next year?
Balance in accumulated E & P $
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