Harold, Marcia, and Richard are equal shareholders in Pelican Corporation, a calendar year C corporation During the current year, Pelican makes a $150,000 distribution to its three shareholders Of the $50,000 that each shareholder receives, the tax result is as follows No income to Harold $30,000 c...

Due to the variations in the effect on each of the shareholders the distributions w ...

Harold, Marcia, and Richard are equal shareholders in Pelican Corporation, a calendar year C corporation. During the

Question:

Harold, Marcia, and Richard are equal shareholders in Pelican Corporation, a calendar year C corporation. During the current year, Pelican makes a $150,000 to its three shareholders. Of the $50,000 that each shareholder receives, the tax result is as follows:
• No income to Harold.
• $30,000 capital gain to Marcia.
• $50,000 capital gain to Richard.
Explain the variations in these tax consequences.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...