29 On January 1,206, an S corporation has accumulated E P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000 The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000 During 206, the corporation reports ordinary income of $10,000 and a $20,000 long term capital gain During 206, the corporation distributes $65,000 to Betty The amount of the distribution that represents a taxable dividend is a $0 b $20,000 c $50,000 d $55,000 30 On January 1, 20X6, an S corporation has accumulated E P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000 The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000 During 206, the corporation reports ordinary income of $10,000 and a $20,000 long term capital gain During 206, the corporation distributes $65,000 to Betty The balance in the corporation's accumulated E P at the end of 206 is a $0 b $5,000 c $35,000 d $55,000

Question

29  On January 1,206, an S corporation has accumulated E  P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000  The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000  During 206, the corporation reports ordinary income of $10,000 and a $20,000 long term capital gain  During 206, the corporation distributes $65,000 to Betty  The amount of the distribution that represents a taxable dividend is  a  $0  b  $20,000  c  $50,000  d  $55,000  30  On January 1, 20X6, an S corporation has accumulated E  P of $55,000 from its years as a C corporation and has a positive AAA balance of $15,000  The corporation's sole shareholder, Betty, has a basis in her S corporation stock of $30,000  During 206, the corporation reports ordinary income of $10,000 and a $20,000 long term capital gain  During 206, the corporation distributes $65,000 to Betty  The balance in the corporation's accumulated E  P at the end of 206 is  a  $0  b  $5,000  c  $35,000  d  $55,000

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Question

29. On January 1,206, an S corporation has accumulated E&P of $55,000 from its years as a C corporation and has a positive AAA balance

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