8. A corporation with taxable income of $150,000 paid $20,000 in federal income taxes and had $12,000 of tax-exempt inte
Posted: Sat May 07, 2022 7:51 pm
8. A corporation with taxable income of $150,000 paid $20,000 in
federal income taxes
and had $12,000 of tax-exempt interest. It also. donated $20,000
to charity but could only
deduct $16,000 and carried the remaining $4,000 forward. What's
its E&P for the year?
9. Tom owns 200 shares of X Corp and Alice owns 300 shares. The
corp has $100,000
of E&P. The corp declares a stock dividend that gives each
of them a choice: Tom can
take cither 20 shares or $2,000, and Alice can take either 30
shares or $3,000. Tom takes
the money and is taxed on $2,000 of dividend income. Alice takes
the stock. (a) How
much dividend income does Alice have to report? (b) What is her
basis in the 30 new shares?
federal income taxes
and had $12,000 of tax-exempt interest. It also. donated $20,000
to charity but could only
deduct $16,000 and carried the remaining $4,000 forward. What's
its E&P for the year?
9. Tom owns 200 shares of X Corp and Alice owns 300 shares. The
corp has $100,000
of E&P. The corp declares a stock dividend that gives each
of them a choice: Tom can
take cither 20 shares or $2,000, and Alice can take either 30
shares or $3,000. Tom takes
the money and is taxed on $2,000 of dividend income. Alice takes
the stock. (a) How
much dividend income does Alice have to report? (b) What is her
basis in the 30 new shares?