Question
Joanne owns 100% stock of the hockey shop. Her basis in the stock is $24,000. in its first year of existence the hockey shop earned
Joanne owns 100% stock of the hockey shop. Her basis in the stock is $24,000. in its first year of existence the hockey shop earned $30,000 of E&P. One half of this sum was earned form January through June, the other half from July through December. On July 1 hockey shop distributed $40,000 in cash to Joanne.
How will Joanne treat distribution for tax purposes?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
