On January 1, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a

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On January 1, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of Kinney's stock. Kinney's non-separately stated ordinary income for the year is $5,000.
Kinney distributes $6,000 to each shareholder on July 1, and it distributes another $3,000 to each shareholder on December 21. How are the shareholders taxed on the distributions?

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South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

ISBN: 1389

41st Edition

Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney

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Question Posted: Sep 19, 2016 08:40 AM

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On January 1, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a

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AAA is 15000 10000 5000 as of December 31 before taking into ac...View the full answer

South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts

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