eflook Exercise 19-22 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has...

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eflook Exercise 19-22 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $90,000. Current E & P for the year is $270,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $144,000 ($72,000 to Elizabeth and $72,000 to Jonathan) on April 30 and a total of $252,000 ($126,000 to Jonathan and $126,000 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $144,000 From Current From Accumulated E & P E&P Treated as Return of Capital 388,800 X December 31 distribution of $252,000 Chapter19 Homework assignment take frame Feedback Check My Work Accumulated E & P is the total of all previous years' current E & P (since February 28, 1913) reduced by distributions made from E & P In previous years. It is important to distinguish between current E & P and accumulated E & P because the taxability of corporate distributions depends on how these two accounts are allocated to each distribution made during the year. eflook Exercise 19-22 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $90,000. Current E & P for the year is $270,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $144,000 ($72,000 to Elizabeth and $72,000 to Jonathan) on April 30 and a total of $252,000 ($126,000 to Jonathan and $126,000 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $144,000 From Current From Accumulated E & P E&P Treated as Return of Capital 388,800 X December 31 distribution of $252,000 Chapter19 Homework assignment take frame Feedback Check My Work Accumulated E & P is the total of all previous years' current E & P (since February 28, 1913) reduced by distributions made from E & P In previous years. It is important to distinguish between current E & P and accumulated E & P because the taxability of corporate distributions depends on how these two accounts are allocated to each distribution made during the year.