The DEF Corp has $3,000 of accumulated E&P and $18,000 of current E&P. It distributed $5,000 on February 15, and $45,000 on November 15. (a) How much of each distribution is a dividend? (b) Suppose it was $18,000 of accumulated and $3,000 of current?

The DEF Corp has $3,000 of accumulated E&P and $18,000 of current E&P. It distributed $5,000 on February 15, and $45,000 on November 15. (a) How much of each distribution is a dividend? (b) Suppose it was $18,000 of accumulated and $3,000 of current?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 6BCRQ

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Question

The DEF Corp has $3,000 of accumulated E&P and $18,000 of current E&P. It distributed
$5,000 on February 15, and $45,000 on November 15.
(a)
How much of each distribution is a dividend?
(b)
Suppose it was $18,000 of accumulated and $3,000 of current?
2.

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