Question
W Inc., a C corporation distributes inventory to its sole shareholder. The inventorys cost basis is $15,000 and its fair value is $20,000. Ws total
W Inc., a C corporation distributes inventory to its sole shareholder. The inventorys cost basis is $15,000 and its fair value is $20,000. Ws total earnings and profits prior to the distribution is $8,000. Ignoring the corporate tax rate, how much of the distribution is taxable as a dividend to the shareholder?
| $20,000 | ||
| $15,000 | ||
| $13,000 | ||
| $8,000 | ||
| $0 |
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Accounting What The World's Best Forensic Accountants And Auditors Know About Forensic Accounting And Auditing That You Dont
Authors: Greg Shields
1st Edition
1647483255, 978-1647483258
