Question
please; explain to me step by step : Tiny and Tim each own half of the 100 outstanding shares of Flower Corporation. This year, Flower
please; explain to me step by step :
Tiny and Tim each own half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year.
a. what is the flower's current E&P
b.Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and Tim report?
c. what amount of capital gain(if any) would tiny and tim report on the distribution in part (b) if their stock bases are 2000 and 10000, respectively?
d. what form would flower used to report non-dividend distribution?
e. on what form( line) would tiny and Tim report non-dividend distribution
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