W Corporation was owned by shareholder C prior to a sale of all of his stock (basis at the beginning of the year, $5,000) to D in June for $10,000 During the year, W Corporation distributed $60,000 on May 1 and $40,000 on September 1 Indicate how the distributions would be treated by individual sha...

a 10000 50000 Working As computed in the table C reports dividend income ...

W Corporation was owned by shareholder C prior to a sale of all of his stock (basis

Question:

W was owned by shareholder C prior to a sale of all of his stock (basis at the beginning of the year, $5,000) to D in June for $10,000. During the year, W distributed $60,000 on May 1 and $40,000 on September 1. Indicate how the distributions would be treated by individual shareholders C and D in the following situations:
Accumulated E&P _______Current E&P
a. $10,000...........................$50,000
b. (70,000)...........................$50,000
c. $95,000...........................(18,250)
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...