Question
I don't have correct answer for below questions, anyone else can help? Lone Star Company is a calendar-year corporation, and this year Lone Star reported
I don't have correct answer for below questions, anyone else can help?
Lone Star Company is a calendar-year corporation, and this year Lone Star reported $130,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $15,600. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $39,000 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31.
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.
b. Suppose that Matt sold half of the shares to Chris on June 1st for $43,000. How much dividend income will Matt recognize this year?
c. If Matt's basis in the Lone Star shares was $7,120 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star?
Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $130,000 in current E\&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E\&P was $15,600. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $39,000 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. Suppose that Matt sold half of the shares to Chris on June 1st for $43,000. How much dividend income will Matt recognize this year Answer is complete but not entirely correct. Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $130,000 in current E\&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E\&P was $15,600. At the beginning of the year, Lone Star's sole shareholder was Matt. Lone Star declared $39,000 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. If Matt's basis in the Lone Star shares was $7,120 at the beginning of the year, how much capital gain will he recognize on the sale Ind distributions from Lone StarStep by Step Solution
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