Question
Noura purchased the following stocks in 2017: 1) 200 shares of ABC for $2,000 2) 500 shares of Dell for $7,700. Noura received 200 shares
Noura purchased the following stocks in 2017:
1) 200 shares of ABC for $2,000
2) 500 shares of Dell for $7,700.
Noura received 200 shares as stock dividends from Dell. Immediately after that, she sold 300 shares for $6,000.
Amount of gain/loss to be included in Nouras tax return for 2019 is
Nabeel purchased all of the ADCB corporation stocks in 2018 for $76,000.
On December 31, 2019, ADCB corporation has current E&P of $15,000.and made a cash distribution of $135,000 to Nabeel. Assume that ADCB has accumulated E&P of $40,000, the distribution will be treated as:
A. | Taxable dividend of $55,000 and capital gain of $80,000. | |
B. | Taxable dividend of $55,000, nontaxable return of investment of $76,000, and a capital gain of $4,000.
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C. | None of these. | |
D. | Taxable dividend of $135,000.
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E. | Taxable dividend of $55,000 and nontaxable return of investment of $80,000.
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