Fannie has been the sole (one hundred percent (100%)) shareholder of Beola Corporation, a calendar year S Corporation, since 1981. At the end of 2023, Fannie's basis in her stock is $36,800 and she receives a distribution of $44,400 from Beola Corporation. Corporate level accounts of Beola Corporation are as follow: Accumulated Adjustments Account (AAA)-$18,900; Previously Taxed Income (PTI) - $8,200; Accumulated Earnings And Profits (AEP)- $3,600. How is Fannie taxed on the distribution? OAS-0-Taxable Dividend and a $-0-Long-Term Capital Gain. A $3,600 Taxable Dividend. O A $3,600 Taxable Dividend and a $9,700 Long-Term Capital Gain. A $3,600 Taxable Dividend and a $4,000 Long-Term Capital Gain.
Fannie has been the sole (one hundred percent (100%)) shareholder of Beola Corporation, a calendar year S Corporation, since 1981. At the end of 2023, Fannie's basis in her stock is $36,800 and she receives a distribution of $44,400 from Beola Corporation. Corporate level accounts of Beola Corporation are as follow: Accumulated Adjustments Account (AAA)-$18,900; Previously Taxed Income (PTI) - $8,200; Accumulated Earnings And Profits (AEP)- $3,600. How is Fannie taxed on the distribution? OAS-0-Taxable Dividend and a $-0-Long-Term Capital Gain. A $3,600 Taxable Dividend. O A $3,600 Taxable Dividend and a $9,700 Long-Term Capital Gain. A $3,600 Taxable Dividend and a $4,000 Long-Term Capital Gain.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 49P
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Transcribed Image Text:Fannie has been the sole (one hundred percent (100%)) shareholder of Beola Corporation, a calendar year S Corporation, since 1981.
At the end of 2023, Fannie's basis in her stock is $36,800 and she receives a distribution of $44,400 from Beola Corporation. Corporate
level accounts of Beola Corporation are as follow: Accumulated Adjustments Account (AAA)-$18,900; Previously Taxed Income (PTI) -
$8,200; Accumulated Earnings And Profits (AEP)- $3,600. How is Fannie taxed on the distribution?
OAS-0-Taxable Dividend and a $-0- Long-Term Capital Gain.
A $3,600 Taxable Dividend.
A $3,600 Taxable Dividend and a $9,700 Long-Term Capital Gain.
A $3,600 Taxable Dividend and a $4,000 Long-Term Capital Gain.
4
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