Question
a)Distribution of $15,000 cash to a shareholder if the accumulated adjustments account balance is $5,000 and the shareholders basis in his or her stock is
a)Distribution of $15,000 cash to a shareholder if the accumulated adjustments account balance is $5,000 and the shareholders basis in his or her stock is $15,000. There are no Subchapter C earnings and profits.
What are the Capital Gains and Taxable Dividends
b) Distribution of $15,000 cash to shareholder if the accumulated adjustments account balance is $10,000. The shareholders basis in his or her stock is $15,000. The Subchapter C earnings and profits balance is $5,000. No election to apply distributions to earnings and profits first has been made.
What are the Capital Gains and Taxable Dividends
c) Distribution of a computer to a shareholder when its basis to the S Corporation was $15,000 and its fair market value was $10,000. The accumulated adjustments account balance is $10,000, and the shareholders basis in his or her stock is $10,000. There are no Subchapter C earnings and profits.
What are the Capital Gains and Taxable Dividends
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
6th edition
133852105, 978-0133852103
