Bruin Company reports current E&P of $320,000 in 20X3 and accumulated E&P at the beginning of the year of $160,000. Bruin distributed $520,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3? 1. $520,000. 2. $480,000. 3. $320,000. 4. $160,000.
Bruin Company reports current E&P of $320,000 in 20X3 and accumulated E&P at the beginning of the year of $160,000. Bruin distributed $520,000 to its sole shareholder on January 1, 20X3. How much of the distribution is treated as a dividend in 20X3? 1. $520,000. 2. $480,000. 3. $320,000. 4. $160,000.
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 1BCRQ
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Transcribed Image Text:Bruin Company reports current E&P of $320,000 in 20X3 and accumulated
E&P at the beginning of the year of $160,000. Bruin distributed $520,000 to
its sole shareholder on January 1, 20X3. How much of the distribution is
treated as a dividend in 20X3?
1. $520,000.
2. $480,000.
3. $320,000.
4. $160,000.
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