ZuoTi.Pro
Question

  On January 1, Scorpio Corporation (a calendar year taxpayer) has accumulated E & P of $200,000....

  On January 1, Scorpio Corporation (a calendar year taxpayer) has accumulated E & P of $200,000. During the year, Scorpio incurs a net loss of $300,000 from operations that accrues ratably. On June 30, Scorpio distributes $115,000 to Laura, its sole shareholder. How much of the $115,000 represents ordinary dividend income to Laura?

$100,000

$0

$50,000

$115,000

None of the above.
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Hi

Let me know in case you face any issue:

Answer is highlighted in yellow: Solution: $50,000 Answer: Explanation: Working: Negative E&P during the current period till

0 0
Add a comment
Know the answer?
Add Answer to:
  On January 1, Scorpio Corporation (a calendar year taxpayer) has accumulated E & P of $200,000....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the...

    QUESTION 7 A corporation sells property (basis of $175,000) to its sole shareholder for $125,000, the fair market value of the property. With respect to the sale, The shareholder has a basis of S175,000 in the property. The corporation has a tax loss of S50,000. The corporation does not recognize a tax loss but reduces its E & P account $50,000. The shareholder has a constructive dividend of $50,000. None of the above QUESTION 8 Assume taxable income is the...

  • Problem 13-14 (LO. 1, 3) Chang Corporation is a calendar year taxpayer. At the beginning of...

    Problem 13-14 (LO. 1, 3) Chang Corporation is a calendar year taxpayer. At the beginning of the current year, Chang holds accumulated E & P of $33,000. The corporation incurs a deficit in current E&P of $46,000 that accrues ratably throughout the year. On June 30, Chang distributes $20,000 to its sole shareholder, Libby. If Libby's stock has a basis of $4,000, how is she taxed on the distribution? Taxable dividend income in the amount of $ Return of capital...

  • At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P...

    At the beginning of the year, Myrna Corporation (a calendar year taxpayer) has E & P of $32,000. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $50,000 to its sole shareholder, Abby, whose stock basis is $10,000. How is the distribution treated for tax purposes? If an amount is zero, enter "0". As a result the distribution Abby has the following: Dividend income: ? Return of capital: ? Capital gain: ?...

  • At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E...

    At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue’s current E & P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pam and Jon. Pam’s stock basis is $11,000; Jon’s stock basis is $26,000. Complete the following table: Pam Jon Taxable dividend Return of capital Taxable gain

  • On January 1, Tulip Corporation (a calendar year taxpayer) has accumulated E & P of $300,000. Its current E &am...

    On January 1, Tulip Corporation (a calendar year taxpayer) has accumulated E & P of $300,000. Its current E & P for the year is $90,000 (before considering dividend distributions). During the year, Tulip distributes $600,000 ($450,000 to Anne on April 1, $150,000 To Tom on August 1) to its two shareholders, Anne and Tom. Anne has a basis in her stock of $65,000, while Tom's basis is $120,000. What is the effect of the distribution by Tulip Corporation on...

  • At the beginning of the year, Myrna Corporation (a calendar year taxpayer) holds E & P...

    At the beginning of the year, Myrna Corporation (a calendar year taxpayer) holds E & P of $87,900. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $131,850 to its sole shareholder, Abby, whose stock basis is $26,370. How does the Federal income tax law treat this distribution? As a result the distribution Abby has the following: • Dividend income:_____ $ • Return of capital: _____ $ • Capital gain:_____ $ •...

  • Assume a calendar-year corporation has a deficit in current E&P of ($100) and positive accumulated E&P...

    Assume a calendar-year corporation has a deficit in current E&P of ($100) and positive accumulated E&P of $100. Under this circumstance, a cash distribution of $100 to the corporation’s sole shareholder on June 30 will not be treated as a dividend because total E&P at December 31 is $0. True or false? Explain.

  • At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E...

    At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $290,000. Blue's current E & P is $174,000, and at the end of the year, it distributes $580,000 ($290,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $40,600; Jon's stock basis is $162,400. How is the distribution treated for tax purposes? If an amount is zero, enter "0". Pam has the following: Dividend income: $ Capital gain:...

  • Aztec Company reports current E&P of $200,000 in 20x3 and a deficit of ($100,000) in accumulated...

    Aztec Company reports current E&P of $200,000 in 20x3 and a deficit of ($100,000) in accumulated E&P at the beginning of the year. Aztec distributed $300,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3? Multiple Choice $300,000 $200,000. $100,000. $0.

  • 24. LO.1, 4 At the start of the current year, Blue Corporation (a calendar year taxpayer)...

    24. LO.1, 4 At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E&P of $100,000. Blue's current E&P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $11,000; Jon's stock basis is $26,000. How is the distribution treated for tax purposes?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT