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In each of the following situations complete the blanks Distribution (cash) S/H Basis in Stock Corporate...

In each of the following situations complete the blanks

Distribution (cash)

S/H Basis in Stock

Corporate E&P

Dividend

Return of Capital

Capital Gain

50,000

20,000

500,000

200,000

50,000

20,000

100,000

20,000

300,000

130,000

500,000

20,000

130,000

500,000

500,000

700,000

800,000

20,000

20,000

800,000

500,000

Solutions

Expert Solution

Distribution (cash) S/H Basis in Stock Corporate E&P Dividend Return of Capital Capital Gain
50,000 20,000 500,000       50,000                        -                  -  
200,000 50,000 20,000       20,000                 50,000       130,000
100,000 20,000 300,000    100,000                        -                  -  
130,000 500,000 20,000       20,000              110,000                -  
130,000 500,000 500,000    130,000                        -                  -  
700,000 800,000 20,000       20,000              680,000                -  
20,000 800,000 500,000       20,000                        -                  -  
Working:
Distribution (cash) S/H Basis in Stock Corporate E&P Dividend Return of Capital Capital Gain
50,000 20,000 500,000     50,000                        -                                  -  
200,000 50,000 20,000     20,000                 50,000 =200000-50000-20000
100,000 20,000 300,000 100,000                        -                                  -  
130,000 500,000 20,000     20,000 =130000-20000                                -  
130,000 500,000 500,000 130,000                        -                                  -  
700,000 800,000 20,000     20,000 =700000-20000                                -  
20,000 800,000 500,000     20,000                        -                                  -  

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