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All the information is here. Please help me solve. $30,000 dividend and $95,000 capital gain O $40,000 dividend O $8,000 capital gain O $145,000 capital
All the information is here. Please help me solve.
$30,000 dividend and $95,000 capital gain O $40,000 dividend O $8,000 capital gain O $145,000 capital gain O $55,000 dividend and $10,000 capital gain O $8,000 dividend Scroll down to complete all parts of this task. Select from the option list provided the correct tax treatment of the amount received by the shareholders for each of the following distributions. Each choice may be used once, more than once, or not at all. Distribution Tax treatment E !!! 1. Green, Inc., had $90,000 in accumulated E&P on January 1, 2020. During 2020, Green had current E&P of $25,000 and made a $40,000 cash distribution to its shareholders. 2. Hope Corp. had accumulated earnings and profits of $70,000 at the beginning of 2020. During the year, they had current earnings and profits of $60,000 and made a cash distribution of $145,000. The shareholders' basis in the stock was $130,000. nii Select an option below O No dividend or capital gain O $130,000 dividend and $15,000 capital recovery O $30,000 dividend and $95,000 capital gain 3. Larry holds 100% of Animal Corp.'s stock. His basis in the stock is $75,000. Animal has $35,000 of accumulated E&P and $20,000 current E&P. In the current year, Animal distributed $140,000 cash to Larry. 4. In 2011, Tina purchased stock for $35,000. In 2019, she received a return of capital of $13,000 and reduced the basis of her stock by that amount. In 2020, she received distribution of $30,000, which reduced the basis of her stock to zero. At no time did the corporation have E&P. 5. Gerald holds 95,000 shares of Interco, Inc., at a basis of $120,000. Interco has $80,000 of accumulated E&P and $40,000 of current E&P. Interco distributed 10,000 shares of its stock to Gerald in a proportionate distribution. 0 $40,000 dividend O $8,000 capital gain 01 Annnnonitalarin RESET CANCEL ACCEPT $30,000 dividend and $95,000 capital gain O $40,000 dividend O $8,000 capital gain O $145,000 capital gain O $55,000 dividend and $10,000 capital gain O $8,000 dividend Scroll down to complete all parts of this task. Select from the option list provided the correct tax treatment of the amount received by the shareholders for each of the following distributions. Each choice may be used once, more than once, or not at all. Distribution Tax treatment E !!! 1. Green, Inc., had $90,000 in accumulated E&P on January 1, 2020. During 2020, Green had current E&P of $25,000 and made a $40,000 cash distribution to its shareholders. 2. Hope Corp. had accumulated earnings and profits of $70,000 at the beginning of 2020. During the year, they had current earnings and profits of $60,000 and made a cash distribution of $145,000. The shareholders' basis in the stock was $130,000. nii Select an option below O No dividend or capital gain O $130,000 dividend and $15,000 capital recovery O $30,000 dividend and $95,000 capital gain 3. Larry holds 100% of Animal Corp.'s stock. His basis in the stock is $75,000. Animal has $35,000 of accumulated E&P and $20,000 current E&P. In the current year, Animal distributed $140,000 cash to Larry. 4. In 2011, Tina purchased stock for $35,000. In 2019, she received a return of capital of $13,000 and reduced the basis of her stock by that amount. In 2020, she received distribution of $30,000, which reduced the basis of her stock to zero. At no time did the corporation have E&P. 5. Gerald holds 95,000 shares of Interco, Inc., at a basis of $120,000. Interco has $80,000 of accumulated E&P and $40,000 of current E&P. Interco distributed 10,000 shares of its stock to Gerald in a proportionate distribution. 0 $40,000 dividend O $8,000 capital gain 01 Annnnonitalarin RESET CANCEL ACCEPTStep by Step Solution
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