Mercury corporation has two equal shareholders, billy and Ana. Mercury Corporation has current E&P of 50,000 and a deficit in accumulated E&P of 40,000. On September 10, mercury corporation distributes investment land to these shareholders. The land distributed to Billy has a FMV of 30,000 and a basis to mercury corporation of $24,000. the land distributed to Ana has a FMV of 30,000 and a basis to mercury corporation of $26,000. Billy basis for his stock is 2,000 and Ana has a FMV of 30,000 and a basis to mercury corporation of 26,000. Billy basis for his stock is 2,000 and Ana stock basis is 1,000. there are no other distribution this year. How much dividend income does Billy recognize.
Mercury corporation has two equal shareholders, billy and Ana. Mercury Corporation has current E&P of 50,000 and a deficit in accumulated E&P of 40,000. On September 10, mercury corporation distributes investment land to these shareholders. The land distributed to Billy has a FMV of 30,000 and a basis to mercury corporation of $24,000. the land distributed to Ana has a FMV of 30,000 and a basis to mercury corporation of $26,000. Billy basis for his stock is 2,000 and Ana has a FMV of 30,000 and a basis to mercury corporation of 26,000. Billy basis for his stock is 2,000 and Ana stock basis is 1,000. there are no other distribution this year. How much dividend income does Billy recognize.
Chapter22: S Corporations
Section: Chapter Questions
Problem 30P
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Mercury corporation has two equal shareholders, billy and Ana. Mercury Corporation has current E&P of 50,000 and a deficit in accumulated E&P of 40,000. On September 10, mercury corporation distributes investment land to these shareholders. The land distributed to Billy has a FMV of 30,000 and a basis to mercury corporation of $24,000. the land distributed to Ana has a FMV of 30,000 and a basis to mercury corporation of $26,000. Billy basis for his stock is 2,000 and Ana has a FMV of 30,000 and a basis to mercury corporation of 26,000. Billy basis for his stock is 2,000 and Ana stock basis is 1,000. there are no other distribution this year. How much dividend income does Billy recognize.
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