900. Current E & P for the year is nuary 1 of the current year, Rhondell Corporation holds accumulated E & 000, earned evenly throughout the year. Elizabeth and Jonathan are the sole equal shareholders of Rhondell from January pril 30. On May 1, Elizabeth sells all of her stock to Marshall. dell makes two distributions to shareholders during the year, as indicated below. Analyze the distributions by completing ble that follows. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return pital. amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent utations. Round final answers to the nearest dollar. al Distribution il 30, $272,000 cash cember 31, $476,000 cash From Current E & P $ From Accumulated E & P $ $ Return of Capital 0
900. Current E & P for the year is nuary 1 of the current year, Rhondell Corporation holds accumulated E & 000, earned evenly throughout the year. Elizabeth and Jonathan are the sole equal shareholders of Rhondell from January pril 30. On May 1, Elizabeth sells all of her stock to Marshall. dell makes two distributions to shareholders during the year, as indicated below. Analyze the distributions by completing ble that follows. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return pital. amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent utations. Round final answers to the nearest dollar. al Distribution il 30, $272,000 cash cember 31, $476,000 cash From Current E & P $ From Accumulated E & P $ $ Return of Capital 0
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter13: Corporations: Earning & Profits And Distributions
Section: Chapter Questions
Problem 2CE
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Transcribed Image Text:On January 1 of the current year, Rhondell Corporation holds accumulated E & P of $170,000. Current E & P for the year is
$510,000, earned evenly throughout the year. Elizabeth and Jonathan are the sole equal shareholders of Rhondell from January
1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall.
Rhondell makes two distributions to shareholders during the year, as indicated below. Analyze the distributions by completing
the table that follows. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return
of capital.
If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent
computations. Round final answers to the nearest dollar.
Total Distribution
April 30, $272,000 cash
December 31, $476,000 cash
From Current
E & P
From Accumulated
E & P
Return of
Capital
0
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