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Exercise 1 9 - 2 2 ( Algorithmic ) ( LO . 3 ) Exercise 1 9 - 2 2 ( Algorithmic ) ( LO
Exercise AlgorithmicLO Exercise AlgorithmicLO
On January of the current year, Rhondell Corporation has accumulated E & P of $ Current E & P for the year is $ earned
evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January to April On May Elizabeth
sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $ $ to
Elizabeth and $ to Jonathan on April and a total of $ $ to Jonathan and $ Marshall on December
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 If required, round any division to two decimal places and use in subsequent computations.
Round final answers to the nearest dollar.
Foodaack
Chock My Wark
Accumulated & is the total of all previous years' current & since February reduced by distributions made from & 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.
On January of the current year, Rhondell Corporation has accumulated E & P of $ Current E & P for the year is $ earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January to April On May Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $$ to Elizabeth and $ to Jonathan on April and a total of $$ to Jonathan and $ Marshall on December
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 If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar.
From Current
E & P From Accumulated
E & P Treated as
Return of Capital
April distribution of $ $fill in the blank
$fill in the blank
$fill in the blank
December distribution of $ $fill in the blank
$fill in the blank
$fill in the blank
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