Griffey Corporation has 22,000 of accumulated EP and incurs a loss of $12,000 for the year. The loss accrues ratably through the year. On April 1, Griffey distributes 20,000 to its sole shareholder, Ken. How much of the distribution will get dividend treatment? How much of the distribution will reduce Ken’s basis in his Griffey stock?
Griffey Corporation has 22,000 of accumulated EP and incurs a loss of $12,000 for the year. The loss accrues ratably through the year. On April 1, Griffey distributes 20,000 to its sole shareholder, Ken. How much of the distribution will get dividend treatment? How much of the distribution will reduce Ken’s basis in his Griffey stock?
Chapter22: S Corporations
Section: Chapter Questions
Problem 23CE
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Griffey Corporation has 22,000 of accumulated EP and incurs a loss of $12,000 for the year. The loss accrues ratably through the year. On April 1, Griffey distributes 20,000 to its sole shareholder, Ken. How much of the distribution will get dividend treatment? How much of the distribution will reduce Ken’s basis in his Griffey stock?
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT