Lincoln Corporation owns 30% of Carter Corporations stock. On December 31, Carter Corporation, with current E &

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Lincoln Corporation owns 30% of Carter Corporations stock. On December 31, Carter Corporation, with current E & P of $220,000, distributes land (fair market value of $100,000; basis of $125,000)to Iris. The land is subject to a liability of $75,000, which Lincoln assumes.

What is the amount of the dividend (without considering the dividend received deduction) that Carter Corporation must pay tax on?

Secondly, what is Lincoln Corporations ending E&P after the distribution?

Posted Date: Jul 11, 2024 01:18 PM

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Lincoln Corporation owns 30% of Carter Corporations stock. On December 31, Carter Corporation, with current E &

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