Question
Austin Company reports positive current E&P of $200,000 and negative accumulated E&P of $300,000. Austin distributed $250,000 to its sole shareholder, Betsy Bevo, on December
Austin Company reports positive current E&P of $200,000 and negative accumulated E&P of
$300,000. Austin distributed $250,000 to its sole shareholder, Betsy Bevo, on December 31, 20X3.
Betsy' tax basis in her stock is $125,000. How much of the $250,000 distribution is treated as a
dividend to Betsy and what is her tax basis in Austin stock after the distribution?
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Operational Assessment Of IT Internal Audit And IT Audit
Authors: Steve Katzman
1st Edition
0367567946, 978-0367567941
