Goring Corporation has Accumulated E otiレ
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 37P
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Transcribed Image Text:Goring Corporation has Accumulated E&P of $50,000 and Current E&P of $60,000.
Goring makes two distributions of $60,000 each to its sole shareholder, Rufus,
during the year. At the beginning of the year, Rufus' basis in his corporate stock was
$180,000. (SEE TOPIC 7 (CH19) HANDOUT)
Select ALL of the TRUE statements listed below.
The entire distributions are taxable income to Rufus.
| $110,000 of the distributions are taxable income to Rufus.
| Rufus' basis in stock at the end of the year is $180,000.
Rufus' basis in stock at the end of the year is $170,000.
Goring Corporation's balance in accumulated E&P at the end of the year is
-$10,000.
Goring Corporation's balance in accumulated E&P at the end of the year is $0.
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