Question

In: Accounting

16) Sally, an individual, is the sole shareholder of LMNOP Corp and has basis of $1,500...

16) Sally, an individual, is the sole shareholder of LMNOP Corp and has basis of $1,500 in the stock of LMNOP Corp. LMNOP Corp has accumulated E & P of $2,000 and no current E & P for the current year, 2018. In 2018, LMNOP Corp distributes $3,400 to Sally. Calculate the following:

A) Dividend income to Sally. If none, please indicate.

B) Return of capital to Sally. If none, please indicate.

C) Capital gain to Sally. If none, please indicate.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Ashley, the sole shareholder of Hawk Corporation, has a stock basis of $400,000 at the beginning...
Ashley, the sole shareholder of Hawk Corporation, has a stock basis of $400,000 at the beginning of the year. On July 1, she sells all of her stock for $2 million to Matt (1 million) and Brody (1 million) . On January 1, Hawk has accumulated E & P of $180,000 and during the year, current E & P of $320,000. Hawk makes the following cash distributions: $270,000 to Ashley on March 31, $180,000 to Matt on October1 and $180,000...
9. Ashley, the sole shareholder of Hawk Corporation, has a stock basis of $400,000 at the...
9. Ashley, the sole shareholder of Hawk Corporation, has a stock basis of $400,000 at the beginning of the year. On July 1, she sells all of her stock for $2 million to Matt (1 million) and Brody (1 million) . On January 1, Hawk has accumulated E & P of $180,000 and during the year, current E & P of $320,000. Hawk makes the following cash distributions: $270,000 to Ashley on March 31, $180,000 to Matt on October1 and...
S corporation’s sole shareholder has a basis of $20,000, and lent the corporation $20,000. The net...
S corporation’s sole shareholder has a basis of $20,000, and lent the corporation $20,000. The net operating loss for the year was $50,000. Explain the effect on the shareholder
Amy, a single individual and sole shareholder of Brown Corporation, sold all of the Brown stock...
Amy, a single individual and sole shareholder of Brown Corporation, sold all of the Brown stock for $30,000. Amy's stock basis was $150,000. She had owned the stock for 3 years. Brown Corporation meets the Section 1244 requirements. 1) How much of an ordinary loss does Amy have? 2) How much of a capital loss does Amy have? 3) Do your answers above change if Amy is married? Explain how.
Birch Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, James, who...
Birch Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, James, who has operated it as an S corporation since its inception. Last year, James made a direct loan to Birch Corp. in the amount of $7,200. Birch Corp. has paid the interest on the loan but has not yet paid any principal. (Assume the loan qualifies as debt for tax purposes.) For the year, Birch experienced a $25,500 business loss. What amount of the loss...
5) Olivia is the sole shareholder in Western Corporation and has owned the stock for five...
5) Olivia is the sole shareholder in Western Corporation and has owned the stock for five years. The basis in her stock is $50,000. Western distributes $35,000 to Olivia. Accumulated earnings and profits at the beginning of the year equal $25,000 and current earnings and profits equal $5,000. Required: What are the tax consequences of this information? What are the tax consequences of this information if, instead of distributing $35,000 to Olivia, Western distributes $100,000 to Olivia?
1. Explain the tax effect to the corporation and to the sole shareholder. XYZ Corporation has...
1. Explain the tax effect to the corporation and to the sole shareholder. XYZ Corporation has one shareholder. The shareholder’s tax basis in his shares is $60,000. Corporate E&P BEFORE the effects of any distribution is $10,000. The corporation distributes the following property: The cororation distributes land with FMV of $120,000 and a tax basis to the corporation of $70,000.
Sally has been practicing as an individual counselor for several years and has just begun working...
Sally has been practicing as an individual counselor for several years and has just begun working as a group counselor. As a part of her training, she led a psychotherapy group of women who had been hospitalized for mental disorders. Because she was sensitive and well trained as an individual clinician, Sally did well with the group. Members seemed to like her and she felt confident in her abilities, as did her ­clinical supervisor. After a busy and difficult week,...
Information given: Sally is a 25% partner in the STUV partnership. She has a tax basis...
Information given: Sally is a 25% partner in the STUV partnership. She has a tax basis in her partnership interest of $300,000. Sally also owns some land and a small building that she would like to sell to the partnership. The property has a fair market value of $500,000. Sally purchased the building for $400,000, and after taking MACRS deductions, her tax basis in the building is $350,000. In general, the realized gain or loss from a property transaction is...
Information given: Sally is a 25% partner in the STUV partnership. She has a tax basis...
Information given: Sally is a 25% partner in the STUV partnership. She has a tax basis in her partnership interest of $300,000. Sally also owns some land and a small building that she would like to sell to the partnership. The property has a fair market value of $500,000. Sally purchased the building for $400,000, and after taking MACRS deductions, her tax basis in the building is $350,000. In general, the realized gain or loss from a property transaction is...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT