Question
On January 1, 2015, Kinney, Inc., an S corporation, reports $4,000 of accumulated E &P and a balance of $10,000 in AAA. Kinney has two
On January 1, 2015, Kinney, Inc., an S corporation, reports $4,000 of accumulated E &P and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 5000 shares of Kinneys stock. Kinneys nonseparately stated ordinary income for the year is $5,000. Kinney distributes $6,000 to each shareholder on July 1, and it distributes another $3,000 to each shareholder on December 21. How are the shareholders taxed on the distributions?
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Auditing and Assurance services an integrated approach
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
15th edition
978-0133125634, 9780133423815, 133125637, 133423816, 978-0133125689
