X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018 Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000 X Corporation had accumulated E P of $20,000 on January 1, 2018 X Corporation had a loss of $30,000 during the period January 1 June 30, but total year profits as of December 31, 2018 were $5,000 Based on this information, Andy will report a Dividend income of $10,000 and zero return of capital b Return of capital of $10,000 and zero dividend income c Dividend income of $5,000 and return of capital of $5,000 d Dividend income of $5,000 and capital gain of $5,000 e None of the above 2 points QUESTION 29 X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018 Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000 X Corporation had accumulated E P of $20,000 on January 1, 2018 X Corporation had a $36,000 loss as of December 31, 2018 (incurred evenly throughout the year) Based on this information, Andy will report a Dividend income of $2,000 and $8,000 return of capital b Return of capital of $2,000 and $8,000 dividend income c Dividend income of $5,000 and return of capital of $5,000 d Dividend income of $10,000 and capital gain of zero e None of the above 2 points QUESTION 30 X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018 Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000 X Corporation had a deficit in accumulated E P of $30,000 on January 1, 2018 X Corporation had a $5,000 profit as of December 31, 2018 Based on this information, Andy will report a Dividend income of $2,000 and $8,000 return of capital b Return of capital of $2,000 and $8,000 dividend income c Dividend income of $5,000 and return of capital of $5,000 d Dividend income of $10,000 and capital gain of zero e None of the above 2 points QUESTION 31 X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018 Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000 X Corporation had a deficit in accumulated E P of $15,000 on January 1, 2018 X Corporation had a $5,000 loss as of December 31, 2018 (incurred evenly throughout the year) Based on this information, Andy will report a Dividend income of $2,000 and $8,000 return of capital b Return of capital of $2,000 and $8,000 dividend income c Dividend income of $5,000 and return of capital of $5,000 d Dividend income of $10,000 and capital gain of zero e None of the above

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X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018. Andys stock basis in X Corporation, before adjusting for the 2018 distribution,

X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018. Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000. X Corporation had accumulated E & P of $20,000 on January 1, 2018. X Corporation had a loss of $30,000 during the period January 1 June 30, but total year profits as of December 31, 2018 were $5,000. Based on this information, Andy will report:

		a. Dividend income of $10,000 and zero return of capital.
		b. Return of capital of $10,000 and zero dividend income.
		c. Dividend income of $5,000 and return of capital of $5,000.
		d. Dividend income of $5,000 and capital gain of $5,000.
		e. None of the above.

2 points

QUESTION 29

X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018. Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000. X Corporation had accumulated E & P of $20,000 on January 1, 2018. X Corporation had a $36,000 loss as of December 31, 2018 (incurred evenly throughout the year). Based on this information, Andy will report:

		a. Dividend income of $2,000 and $8,000 return of capital
		b. Return of capital of $2,000 and $8,000 dividend income.
		c. Dividend income of $5,000 and return of capital of $5,000.
		d. Dividend income of $10,000 and capital gain of zero.
		e. None of the above.

2 points

QUESTION 30

X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018. Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000. X Corporation had a deficit in accumulated E & P of $30,000 on January 1, 2018. X Corporation had a $5,000 profit as of December 31, 2018. Based on this information, Andy will report:

		a. Dividend income of $2,000 and $8,000 return of capital
		b. Return of capital of $2,000 and $8,000 dividend income.
		c. Dividend income of $5,000 and return of capital of $5,000.
		d. Dividend income of $10,000 and capital gain of zero.
		e. None of the above.

2 points

QUESTION 31

X Corporation distributed $10,000 to Andy, its sole shareholder, on May 1, 2018. Andys stock basis in X Corporation, before adjusting for the 2018 distribution, was $8,000. X Corporation had a deficit in accumulated E & P of $15,000 on January 1, 2018. X Corporation had a $5,000 loss as of December 31, 2018 (incurred evenly throughout the year). Based on this information, Andy will report:

		a. Dividend income of $2,000 and $8,000 return of capital
		b. Return of capital of $2,000 and $8,000 dividend income.
		c. Dividend income of $5,000 and return of capital of $5,000.
		d. Dividend income of $10,000 and capital gain of zero.
		e. None of the above.