Matt owns 10 percent of the 5,000 shares of Green Corporation. On July 1, 2020, Green Corporation declares a 5% stock dividend to all shareholders.
Matt owns 10 percent of the 5,000 shares of Green Corporation. On July 1, 2020, Green Corporation declares a 5% stock dividend to all shareholders. The FMV of Green stock at the distribution is $50 per share. Green Corporation has current E&P of $420,000. How much income does Matt recognize?
$2,500 $0 $5,000 $1,250
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Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
