The C-Corporation had accumulated E&P of $50,000 as of January 1, Year 2, and current E&P...

 

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The C-Corporation had accumulated E&P of $50,000 as of January 1, Year 2, and current E&P of $450,000 for Year 2. The Corporation made a total of $600,000 in distributions to its shareholders on December 31, Year 2. Shareholder information is as follows: Shareholder Barbara Catherine Daphne Ownership% Stock Basis, 1/1/Y2 20% 15,000 30% 28,000 50% 80,000 No capital contributions were made by the shareholders during Year 2. Calculate how the distribution is allocated and treated to each of the shareholders Consider current E&P, accumulated E&P, return of capital, and capital gain income. The C-Corporation had accumulated E&P of $50,000 as of January 1, Year 2, and current E&P of $450,000 for Year 2. The Corporation made a total of $600,000 in distributions to its shareholders on December 31, Year 2. Shareholder information is as follows: Shareholder Barbara Catherine Daphne Ownership% Stock Basis, 1/1/Y2 20% 15,000 30% 28,000 50% 80,000 No capital contributions were made by the shareholders during Year 2. Calculate how the distribution is allocated and treated to each of the shareholders Consider current E&P, accumulated E&P, return of capital, and capital gain income.

Answer rating: 100% (QA)

Answer To calculate the distribution allocation and treatment for each shareholder we need to consid... View the full answer