During the year, Tom, the sole shareholder of a calendar year S corporation, received a distribution of $20,000. At the end of last year, his stock basis was $5,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. As a result of the distribution how much income/gain does Tom recognize? Answer:
During the year, Tom, the sole shareholder of a calendar year S corporation, received a distribution of $20,000. At the end of last year, his stock basis was $5,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. As a result of the distribution how much income/gain does Tom recognize? Answer:
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 39P
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During the year, Tom, the sole shareholder of a calendar year S corporation, received a distribution of $20,000. At the end of last year, his stock basis was $5,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. As a result of the distribution how much income/gain does Tom recognize?
Answer:
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