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Problem 5 - 2 4 ( Algorithmic ) ( LO . 1 , 4 ) At the start of the current year, Blue Corporation (
Problem AlgorithmicLO
At the start of the current year, Blue Corporation a calendar year taxpayer has accumulated E & P of $ Blue's current E & P is
$ and at the end of the year, it distributes $ $ each to its equal shareholders, Pooja and Jon
is $; Jon's stock basis is $
How is the distribution treated for tax purposes?
If an amount is zero, enter
Pooja has the following:
Dividend income:
Capital gain: $
Stock basis after distribution: $
Jon has the following:
Dividend income:
Capital gain: $
Stock basis after distribution: $
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