Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ Company distributed a filing cabinet to Susie Shareholder at a time when it had $50 of E&P. The filing cabinet was worth $5, had
XYZ Company distributed a filing cabinet to Susie Shareholder at a time when it had $50 of E&P. The filing cabinet was worth $5, had a cost to XYZ of $10, and XYZ claimed $3 of depreciation expense on the filing cabinet. The filing cabinet was encumbered by a $2 mortgage, which Susie assumed. How much dividend income must Susie recognize?
2. XYZ Company distributed a table Susie Shareholder at a time when it had $50 of E&P. The filing cabinet was worth $5, had a cost to XYZ of $9, and XYZ claimed $3 of depreciation expense on the filing cabinet. The filing cabinet was encumbered by a $2 mortgage, which Susie assumed. What is XYZ's E&P after the distribution?
3. XYZ Company distributed a filing cabinet to Susie Shareholder at a time when it had $50 of E&P. The filing cabinet was worth $5, had a cost to XYZ of $10, and XYZ claimed $3 of depreciation expense on the filing cabinet. The filing cabinet was encumbered by a $2 mortgage, which Susie assumed. What is Susie's adjusted basis in the filing cabinet?
4. FLO Company distributed a Thingding to Sally at a time when it had $1 of E&P. The Thingding was worth $21, had an adjusted basis of $17. How much dividend income must Sally recognize from the distribution?
5. X Corporation is a calendar year corporation that began the current year with E&P of $10. During the current year, X Corporation generated $600 of current E&P from operations. On June 30 of the current year, the company distributed an umbrella from its finished goods inventory to its sole shareholder, Samuel. The umbrellas adjusted basis to X Corporation was $50 The fair market value of the umbrellas at the time of the distribution was $30. What is the amount of X's E&P at year end?
2. XYZ Company distributed a table Susie Shareholder at a time when it had $50 of E&P. The filing cabinet was worth $5, had a cost to XYZ of $9, and XYZ claimed $3 of depreciation expense on the filing cabinet. The filing cabinet was encumbered by a $2 mortgage, which Susie assumed. What is XYZ's E&P after the distribution?
3. XYZ Company distributed a filing cabinet to Susie Shareholder at a time when it had $50 of E&P. The filing cabinet was worth $5, had a cost to XYZ of $10, and XYZ claimed $3 of depreciation expense on the filing cabinet. The filing cabinet was encumbered by a $2 mortgage, which Susie assumed. What is Susie's adjusted basis in the filing cabinet?
4. FLO Company distributed a Thingding to Sally at a time when it had $1 of E&P. The Thingding was worth $21, had an adjusted basis of $17. How much dividend income must Sally recognize from the distribution?
5. X Corporation is a calendar year corporation that began the current year with E&P of $10. During the current year, X Corporation generated $600 of current E&P from operations. On June 30 of the current year, the company distributed an umbrella from its finished goods inventory to its sole shareholder, Samuel. The umbrellas adjusted basis to X Corporation was $50 The fair market value of the umbrellas at the time of the distribution was $30. What is the amount of X's E&P at year end?
Step by Step Solution
★★★★★
3.33 Rating (147 Votes )
There are 3 Steps involved in it
Step: 1
1 Susie must recognize 2 in dividend income from the filing cabinet distribution This amount is calc...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started